Yields Slide As Doubts Grow Over Biden Infrastructure Plan

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Zero Hedge: Last week we asked if Biden’s $2.25 trillion “Infrastructure” plan, also known as the American Jobs Plan (not to be confused with its sequel the American Family Plan) will pass Congress, and observed that the plan’s fate will ultimately depend on how centrists such as Joe Manchin and Kyrsten Sinema end up voting:

Centrist Senators such as Joe Manchin and Kyrsten Sinema, who also featured in Rabo’s American Rescue Plan report, may be difficult to keep on board. In other words, while the American Jobs Plan has the potential to unite the Republicans in their opposition to Biden, it will also put tremendous pressure on the internal relations between the left and the right of the Democratic Party.

Since then, amid increasing criticism by progressives (and outright opposition by the GOP) of the Biden infra plan, the market appears to have repriced the likelihood of the $2.25TN plan passing, with Bloomberg yesterday noting that “the response so far in bond markets has been muted, with inflation concerns easing amid doubts over the viability of more-generous spending, even as central banks remain committed to keeping interest rates lower for longer.” Read More

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