The bond market warns Trump and the Republicans about the tax plan.

On January 16th, Jinshi Data reported that the US bond market has sent a message to the new US Congress: it is no longer 2017. With the Republicans regaining full control of the government and considering taking on more debt, they face a much more challenging fiscal and financial environment than in Trump's first term. Interest rates are much higher and budget deficits are much larger. US government bonds have experienced significant dumping in the past few months, making the deficit a bigger burden. In the past few days, the bond prices had a big dump, pushing the benchmark 10-year US Treasury yield to 4.8%. After the latest inflation data was released, the yield fell to 4.65%, which is about 1 percentage point higher than the 2% yield in 2017. Under the new higher interest rate, borrowing money costs more. For every 0.1 percentage point increase in borrowing costs, it will increase interest expenditure by over $300 billion over 10 years.