European futures indicated a dour start to the day as risk sentiment was shrouded by lingering worries of how the U.S. could manage to finance its ballooning fiscal debt as investors exit U.S. assets.
President Donald Trump's massive tax and spending bill cleared an important procedural hurdle in the Republican-controlled House of Representatives, setting it up for a vote that could take place within hours.
Also worrying investors was the lacklustre auction of Treasury bonds that reinforced the "Sell America" narrative, weighing on not just the dollar but Wall Street as well, with traders already jittery after Moody's cut the U.S. triple-A credit rating last week.
The yield on 30-year Treasury bonds stayed above 5% after hitting a 1-1/2 year high earlier in Asian hours.
However, not all assets were taking it on the chin. Bitcoin prices touched a fresh record high on improving sentiment around digital assets. The world's most valuable cryptocurrency has gained nearly 50% from the early April selloff, breaking above the $100,000 mark.
Prices of gold were also making a comeback from a recent slip, given that investors perceive the precious metal to be a safe-haven favourite in times of uncertainty.
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