Unleash The Debt: Why The Senate Budget Deal Is Sending Yields Surging

"When we commented last night on the Senate's proposed bipartisan "deficit-busting" spending deal - one which will raise spending caps by $300bn over the next two years and incorporate a suspension of the debt limit until March 2019 - we observed that "the agreement will achieve one thing - lead to a surge in US debt issuance, and - by implication - even higher yields, leading to an even steeper drop in the market, not to mention more frequent VIX-flaring episodes."

With yields jumping and stocks sliding, so far this prediction appears on target.

As a reminder, one month ago Goldman predicted that  US debt issuance would more than double, rising from $488bn in 2017 to $1,030 billion in 2018..."

at https://www.zerohedge.com/news/2018-02-08/unleash-debt-why-senate-budget-deal-sending-yields-surging