How Wall Street Keeps Absorbing America's Borrowing Binge

The U.S. fiscal outlook is deteriorating. Wall Street doesn’t seem bothered. #

U.S. government bonds rallied this past month as the Congressional Budget Office released its latest forecast for the fiscal 2024 budget deficit. The deficit is expected to reach $1.9 trillion, up from $1.7 trillion last year and the previous estimate of $1.5 trillion. Despite the need for large debt sales to cover the gap between government spending and revenue, Treasury yields have pulled back from their 2023 highs in a broader rally.