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165 days

Here’s the Republican plan to make DOGE cuts permanent - MarketWatch

1. Senate Republicans urge Musk for formal spending cuts via rescissions process. 2. DOGE initiative faces legal challenges and scrutiny from its own party. 3. Experts warn unilateral cuts by DOGE may violate Impoundment Control Act. 4. Proposed rescissions could impact government contracts and bond markets significantly. 5. Budget deficits are predicted to exceed $2 trillion this year.

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FAQ

Why Bearish?

Increased budget deficits may weaken investor confidence in U.S. Treasury securities. Historical examples show budget crises often lead to rising yield rates.

How important is it?

Federal budget discussions directly impact bond markets and interest rates, influencing yield on TMUBMUSD10Y.

Why Short Term?

Immediate reactions to proposed spending cuts can influence market dynamics quickly. Similar instances from previous administrations show rapid market responses.

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