[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Benzinga [@Benzinga](/creator/twitter/Benzinga) on x 305.8K followers Created: 2025-07-05 19:59:51 UTC The recent panic in the bond market may be exaggerated, according to Jim Caron, Chief Investment Officer at Morgan Stanley. Caron believes the sell-off in U.S. Treasury bonds, sparked by tariffs and rising budget deficit concerns, is being fueled more by emotion than fundamentals. Yields recently surged to XXX% on 10-year bonds and XXX% on 30-year bonds. That spike followed a credit rating downgrade from Moody’s and the passage of former President Trump’s “Big Beautiful Bill,” which could significantly expand the U.S. deficit. Still, Caron argues the reaction is out of proportion. He notes the IMF projects the U.S. deficit will be XXX% of GDP this year—down from XXX% last year. He also points out that rising bond yields are not unique to the U.S., with similar trends in Germany, the U.K., and Japan. As for concerns about the U.S. losing its status as a global financial leader, Caron dismisses them as naïve. He says if the dollar’s reserve status were truly threatened, global markets would already be in freefall. For now, he sees the anxiety as largely driven by inexperienced investors overreacting to headlines, rather than structural economic shifts.  XXXXX engagements  **Related Topics** [default risk](/topic/default-risk) [government spending](/topic/government-spending) [budgeting](/topic/budgeting) [tariffs](/topic/tariffs) [fixed income](/topic/fixed-income) [investment](/topic/investment) [morgan stanley](/topic/morgan-stanley) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/Benzinga/status/1941587853353345317)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Benzinga @Benzinga on x 305.8K followers
Created: 2025-07-05 19:59:51 UTC
The recent panic in the bond market may be exaggerated, according to Jim Caron, Chief Investment Officer at Morgan Stanley.
Caron believes the sell-off in U.S. Treasury bonds, sparked by tariffs and rising budget deficit concerns, is being fueled more by emotion than fundamentals.
Yields recently surged to XXX% on 10-year bonds and XXX% on 30-year bonds. That spike followed a credit rating downgrade from Moody’s and the passage of former President Trump’s “Big Beautiful Bill,” which could significantly expand the U.S. deficit.
Still, Caron argues the reaction is out of proportion. He notes the IMF projects the U.S. deficit will be XXX% of GDP this year—down from XXX% last year. He also points out that rising bond yields are not unique to the U.S., with similar trends in Germany, the U.K., and Japan.
As for concerns about the U.S. losing its status as a global financial leader, Caron dismisses them as naïve. He says if the dollar’s reserve status were truly threatened, global markets would already be in freefall.
For now, he sees the anxiety as largely driven by inexperienced investors overreacting to headlines, rather than structural economic shifts.
XXXXX engagements
Related Topics default risk government spending budgeting tariffs fixed income investment morgan stanley stocks financial services