Macro this week has been all about long end rates, according to Goldman Sachs macro traders Cosimo Codacci-Pisanelli and Rikin Shah.
Fiscal sustainability concerns had never really disappeared, but with recession probabilities fading - the market is refocussing on them as Trump’s fiscal bill passes through congress.
From a top level though, while the bill doesn’t increase the deficit further (when netted against expected tariff revenues), it shows no ambition in reducing borrowing.
