As the “One Big Beautiful Bill” progresses to the Senate, investors should brace themselves for continued volatility in Treasury yields, according to Jim Cramer.
What Happened: The host of “Mad Money” warned that the market will likely “flirt” with a 4.75% yield on the 10-year Treasury, advising market participants to “get used to it.”
In a recent post, Cramer directly addressed the anticipated market reaction to the legislative process.
“We will have to endure more torture over the senate and more days where we ‘flirt’ with 4.75% for the ten. Get used to it…,” Cramer tweeted, indicating his expectation of sustained upward pressure on yields during the bill’s consideration in the upper chamber of Congress.
Despite the anticipated “torture” and the elevated yield environment, Cramer maintained an optimistic long-term outlook for the markets. He concluded his sentiment with a reassuring, “…We will get out of this okay,” suggesting that while the immediate future may be challenging for bond markets, the broader economic and investment landscape will ultimately stabilize.
Why It Matters: The 30-Year Treasury yields rose over 5% intraday during the trading sessions this week, and the 10-year Treasury yield also touched 4.6%.
The recent reciprocal tariff pause with U.S. trading partners and a 90-day truce with China have eased immediate worries with respect to duties.
However, the newly proposed “One Big Beautiful Bill Act” is projected by the Congressional Budget Office to increase U.S. national debt by an estimated $3.8 trillion, even as it offers tax relief.
The tax bill has been advanced by the House Rules Committee in an 8-4 vote following a marathon 22-hour hearing.
Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Friday. The SPY was down 1.44% to $574.70, while the QQQ declined 1.66% to $505.47, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Steve Heap On Shutterstock
