Trump’s $5,000 pledge adds uncertainty before $22 billion Treasury auction

  • Trump promised $5,000 payments to every American if Republicans win the midterm elections.
  • $5,000 was pledged without details, and the proposal is considered unlikely to become law.
  • Treasury yields moved narrowly before Thursday’s $22 billion auction of 2056-maturity bonds.

Trump said he would give every American $5,000 if Republicans win the midterm elections, adding uncertainty to bond markets ahead of a 30-year Treasury auction. He provided no details, and the proposal is considered unlikely to become law. Treasury yields fluctuated within a narrow range after the remarks. The comments came as the 30-year Treasury yield neared its highest level since the global financial crisis. Investors are also watching a planned purchase of up to $6 billion in longer-dated government debt, which disappointed some market participants, along with Thursday’s $22 billion auction of bonds maturing in 2056 and consumer-price data due later in the week.

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