Investors see worsening US deficit outlook as tax bill heads to Senate

(Reuters) -Investors are fearing that projections for the U.S. debt mountain could increase further when a sweeping tax and spending bill goes through the Senate, with the risk that bond yields stay higher for longer. Higher bond yields can translate into higher borrowing costs for consumers, businesses and governments. "The concern is that as the bill winds its way through the Senate, spending cuts will get whittled down, stimulus will be added and the deficit will show even more growth," said Brian Nick, chief investment officer at NewEdge Wealth, who sees that translating into higher bond yields and a steeper yield curve.