Trump’s ‘big, beautiful’ bill set to further tarnish U.S. Treasuries’ lustre overseas

News Snapshot:

As the Trump administration’s “big, beautiful bill” grinds its way through the U.S. Senate, incentives are growing for foreign investors to diversify out of U.S. Treasuries losing sheen from prospects of deficit spending and inflation-boosting tariffs. President Donald Trump’s sweeping tax cut and spending measure will boost U.S. debt by US$3.3-trillion, the nonpartisan Congressional Budget Office estimates, while runaway deficits and swelling debt led Moody’s to cut its credit rating in May. “Definitely I’m concerned about the fiscal deficit expansion,” said Toshinobu Chiba, a Tokyo-based rates and credit fund manager for Simplex Asset Management. Mr. Chiba said he has been...