World stock indexes during trading on Wednesday fluctuated slightly below previously reached historic highs, while US Treasury yields held near multi-month highs after the US Senate approved the tax bill.
Earlier Wednesday, the US Senate approved a bill on massive tax reform, which should help boost stock markets. The document is aimed at a second vote in the House of Representatives.
The House of Representatives is also expected to approve the bill, which is then to be signed by US President Donald Trump.
European stock markets declined during the trading session.
The MSCI index of the Asia-Pacific region outside of Japan also declined, while the Japanese Nikkei 225 index closed trading at 0.1% growth.
The MSCI world index, which tracks stocks in 47 countries, has changed slightly and held just below the record highs reached on Monday.
The yield on 10-year US Treasury bonds, which on Tuesday showed the maximum daily growth for almost three months in anticipation of the adoption of the tax bill, is kept at 2.46% – near the highs of the previous day.
US bond yields have risen sharply over the past two days, as the prospect of accelerated inflation and growth has triggered some adjustments to expectations that measures, if taken, could create an environment in which rates will rise faster than expected next year. " , said Michael Hewson, an analyst at CMC Markets in London, with Reuters.
Republicans who control both houses of the US Congress said their tax plan would spur consumer spending and business investment. Independent estimates by the government show that the proposed tax cut will increase at least $ 1 trillion in government debt of $ 20 trillion over 10 years.
European bond markets also suffered losses after a strong sell-off on Tuesday, as a result of which Germany's 30-year bond yields rose to a maximum of three weeks.
The euro added 0.5% on Tuesday when heads of central banks in Estonia, Slovakia and Germany discussed the need to shift debate from bond purchases to other instruments, such as interest rates.
This is once again fueling the debate about tightening the ECB's monetary policy, so despite the prospects of a tax bill in the US, the euro is now strong against the dollar, ”said Masafumi Yamamoto, the chief currency strategist at Mizuho Securities in Tokyo.