The U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds on Wednesday with investors worried about the country's increasing debt burden as Congress wrangles with a tax and spending bill that is expected to worsen the fiscal outlook.

Disappointing US government debt auctions confirm that the bond market is disturbed. Yields for 10-year bonds rose higher than in April, when Trump’s tariffs wrought havoc on the world and hit US credibility.

Market jitters rise over Trump’s $3 trillion tax bill, weak bond demand, and a historic sell-off in long-term Treasuries.

Investing.com -- This week has seen the U.S. dollar decline as market concerns intensified over the potential deficit impact of the new US tax bill.

Popular exchange-traded funds that buy U.S. bonds were falling Wednesday after disappointing demand in an auction for 20-year Treasurys. The iShares Core U.S. Aggregate Bond ETF, which provides exposure to the U.

Yet the tug-of-war continues, and the dollar was sold again in Asia Pacific and Europe today. Among the G10 only the Antipodean currencies are weaker, following Australia's dovish rate cut. Emerging market currencies are mixed.

Longer-dated Treasury yields gained while the dollar broadly eased on Monday amid concerns about the U.S. debt load and a tax-cut bill, following Moody's downgrade of the country's sovereign credit rating.