Core Viewpoint - The recent increase in long-term U.S. Treasury yields is attributed to the signing of the "Big and Beautiful" bill, which is expected to raise the U.S. fiscal deficit, alongside ongoing uncertainties from global tariff conflicts initiated by the Trump administration [1][9]. Treasury Yield Summary - The 30-year Treasury yield is approaching 5%, while the 20-year yield is also nearing this threshold, and the 10-year yield is close to 4.5% [2][3]. - Shorter-term Treasury yields are relatively stable, with the 1-year yield exceeding 4% and the 2-year, 3-year, and 5-year yields fluctuating around 3.9% [3]. - Recent fluctuations in Treasury yields have led to corresponding changes in long-term Treasury futures prices, with the 10-year futures price dropping from nearly $112 to $110.77 [4]. Market Reactions to Legislation - The "Big and Beautiful" bill, which raises the federal debt ceiling to $5 trillion and includes tax cuts to stimulate economic growth, has raised concerns about increased Treasury supply, potentially leading to higher yields [9]. - The anticipated net issuance of Treasury securities is projected to be around $1 trillion in the third quarter, with refinancing pressures easing compared to the previous quarter [9]. Tariff Concerns - The announcement of a 30% tariff on imports from Mexico and the EU starting August 1, 2025, has added to market anxieties, contributing to the volatility in Treasury yields [10]. - Despite these concerns, the long-term value of U.S. Treasuries is supported by the market's recognition of U.S. creditworthiness and the expected downward trend in interest rates [10].