Arif Husain, Chief Information Officer at T. Rowe Price, stated in a report that the likelihood of passing a large-scale fiscal plan before the U.S. Congress's summer recess is increasing. As the Trump administration has not fully resolved its tax cut agenda, fiscal expansion is expected to become the next overwhelming focus of the market.

Fiscal expansion may support economic growth, but most importantly, it may put greater pressure on the U.S. Treasury market. Rising inflation and further global fiscal expansion are unfavorable for U.S. Treasuries, and it is expected that the 10-year Treasury yield will reach 6% in the next 12 to 18 months.