The federal deficit is seen widening from $1.78 trillion in FY2025 to $1.85 trillion this year, rising further to $3.12 trillion by 2036.

In Washington, the Republican-led House passed a bill to revoke President Donald Trump’s tariffs on Canada, signaling internal party divisions ahead of midterms. Though Trump has pledged a veto, the vote exposed concern among lawmakers from trade-sensitive districts over rising costs and job risks.

The dollar index slipped to around 96.8, despite solid labor data. January payrolls rose 130,000 and unemployment fell to 4.3%, pushing Treasury yields higher and shifting rate-cut expectations toward July rather than June. 

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