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US government bonds drop as worries over Donald Trump’s tax bill flare up

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US government bonds drop as worries over Donald Trump’s tax bill flare up

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US government bonds and stocks fell after a weak Treasury auction highlighted investor unease over the country’s rising debt burden, as Donald Trump attempts to push sweeping tax cuts through Congress.

The 30-year Treasury yield was up 0.11 percentage points to 5.096 per cent in afternoon trading, the highest level since late 2023, as the price of the bonds fell. Wednesday’s move added to a multi-day rise in longer-dated Treasuries. The S&P 500 share index fell 1.6 per cent.

The fresh bout of selling came as Republican leadership in Congress held intense talks to advance Trump’s tax legislation to a vote in the House. Trump’s proposal, which he has called a “big, beautiful bill”, is forecast by independent analysts to add at least $3tn to US debt over the next decade.

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House Speaker Mike Johnson said early on Wednesday that he was hopeful he could bring the bill to a vote in the chamber after striking an agreement with party holdouts over state tax deductions. But the deal drew a backlash from fiscal conservatives, who have lobbied for steeper cuts to spending on healthcare programmes and clean-energy tax credits.

The White House invited the far-right Freedom Caucus to hear their concerns on Wednesday afternoon and dispatched National Economic Council director Kevin Hassett to meet with other Republicans at the Capitol.

The talks come just days after Moody’s stripped the US of its pristine triple A credit rating on concerns over rising debt and deficits.

In a sign of those concerns, the US drew weak demand in a $16bn auction for 20-year Treasuries on Wednesday. The country sold the debt with a 5 per cent coupon, the highest interest rate for 20-year bonds at auction since the maturity was reintroduced in 2020.

Primary dealers — banks that are obliged to sop up any bonds not absorbed by others investors — purchased 16.9 per cent of the offering, compared with an average of 15.1 per cent, according to BMO Capital Markets.

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“We had a soft 20-year auction and when combined with the focus on the budget deficit, the market has a bias towards higher yields,” said Ian Lyngen, head of US rates strategy at BMO Capital Markets.

“Markets really have no appetite for duration here,” added Pooja Kumra, a rates strategist at TD Securities, referring to longer-dated securities.

“Especially in the case of the US, we expect all long-end auctions to be highly scrutinised by markets,” Kumra said, citing the budget bill.

One hedge fund manager who asked not to be named described Wednesday’s Treasury auction as “nasty”.

In equities markets, more than nine in 10 of the S&P 500’s member stocks were negative on the day. The financials, real estate and healthcare sectors were the benchmark index’s worst performers.

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Compounding the decline was a sell-off in Big Tech stocks, after ChatGPT maker OpenAI said it had agreed to buy former Apple design chief Sir Jony Ive’s hardware start-up io for $6.4bn. The acquisition extends OpenAI’s bet on alternatives to smartphones.

News of the deal emerged around the same time as the results of the weak Treasury auction. Shares in Apple were down more than 2 per cent, Amazon, Nvidia and Microsoft all fell more than 1 per cent. The tech-heavy Nasdaq Composite was down 1.4 per cent.

The dollar index, tracking the US currency against a basket of peers, was down 0.6 per cent.

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Video: Welcome to Rennie Harris’s Dance Floor

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Video: Welcome to Rennie Harris’s Dance Floor

new video loaded: Welcome to Rennie Harris’s Dance Floor

The acclaimed hip-hop choreographer Rennie Harris’s production “American Street Dancer” brought Detroit Jit, Chicago Footwork and Philly GQ to the stage. We invited cast members to showcase the three street dance styles.

By Chevaz Clarke and Vincent Tullo

January 5, 2026

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Trial begins for officer accused of failing to protect children during Uvalde shooting

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Trial begins for officer accused of failing to protect children during Uvalde shooting

Flowers and candles are placed around crosses to honor the victims killed in a school shooting, May 28, 2022, outside Robb Elementary School in Uvalde, Texas.

Jae C. Hong/AP


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Jae C. Hong/AP

CORPUS CHRISTI, Texas — One of the first police officers to respond to the 2022 school shooting in Uvalde, Texas, goes on trial Monday on charges that he failed to protect children during the attack, when authorities waited more than an hour to confront the gunman.

Adrian Gonzales, a former Uvalde schools officer, faces 29 counts of child abandonment or endangerment in a rare prosecution of an officer accused of not doing more to stop a crime and protect lives.

The teenage gunman killed 19 students and two teachers at Robb Elementary in one of deadliest school shootings in U.S. history.

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Nearly 400 officers from state, local and federal law enforcement agencies responded to the school, but 77 minutes passed from the time authorities arrived until a tactical team breached the classroom and killed the shooter, Salvador Ramos. An investigation later showed that Ramos was obsessed with violence and notoriety in the months leading up to the attack.

Gonzales and former Uvalde schools police chief Pete Arredondo were among the first on the scene, and they are the only two officers to face criminal charges over the slow response. Arredondo’s trial has not yet been scheduled.

The charges against Gonzales carry up to two years in prison if he is convicted. The trial, which is expected to last up to three weeks, begins with jury selection.

Gonzales pleaded not guilty. His attorney has said Gonzales tried to save children that day.

Police and Texas Gov. Greg Abbott initially said swift law enforcement action killed Ramos and saved lives. But that version quickly unraveled as families described begging police to go into the building and 911 calls emerged from students pleading for help.

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The indictment alleges Gonzales placed children in “imminent danger” of injury or death by failing to engage, distract or delay the shooter and by not following his active shooter training. The allegations also say he did not advance toward the gunfire despite hearing shots and being told where the shooter was.

State and federal reviews of the shooting cited cascading problems in law enforcement training, communication, leadership and technology, and questioned why officers waited so long.

According to the state review, Gonzales told investigators that once police realized there were students still sitting in other classrooms, he helped evacuate them.

Some family members of the victims have said more officers should be indicted.

“They all waited and allowed children and teachers to die,” said Velma Lisa Duran, whose sister Irma Garcia was one of the two teachers who were killed.

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Prosecutors will likely face a high bar to win a conviction. Juries are often reluctant to convict law enforcement officers for inaction, as seen after the Parkland, Florida, school massacre in 2018.

Sheriff’s deputy Scot Peterson was charged with failing to confront the shooter in that attack. It was the first such prosecution in the U.S. for an on-campus shooting, and Peterson was acquitted by a jury in 2023.

At the request of Gonzales’ attorneys, the trial was moved about 200 miles (320 kilometers) southeast to Corpus Christi. They argued Gonzales could not receive a fair trial in Uvalde, and prosecutors did not object.

Uvalde, a town of 15,000, still has several prominent reminders of the shooting. Robb Elementary is closed but still stands, and a memorial of 21 crosses and flower sits near the school sign. Another memorial sits at the downtown plaza fountain, and murals depicting several victims can still be seen on the walls of several buildings.

Jesse Rizo, whose 9-year-old niece Jackie was one of the students killed, said even with three-hour drive to Corpus Christi, the family would like to have someone attend the trial every day.

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“It’s important that the jury see that Jackie had a big, strong family,” Rizo said.

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Cuba says 32 Cuban fighters killed in US raids on Venezuela

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Cuba says 32 Cuban fighters killed in US raids on Venezuela

Havana declares two days of mourning for the Cubans killed in US operation to abduct Nicolas Maduro.

Cuba has announced the death of 32 ⁠of its ​citizens during the United States military operation to abduct and detain Venezuelan President Nicolas Maduro and his wife in Caracas.

Havana said on Sunday that there would be two days of mourning on ‌January 5 and ‌6 in ⁠honour of those killed and that ‌funeral arrangements would be announced.

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The state-run Prensa Latina agency said the Cuban “fighters” were killed while “carrying out missions” on behalf of the country’s military, at the request of the Venezuelan government.

The agency said the slain Cubans “fell in direct combat against the attackers or as a result of the bombing of the facilities” after offering “fierce resistance”.

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Cuba is a close ally of Venezuela’s government, and has sent military and police forces to assist in operations in the Latin American country for years.

Maduro and his wife have been flown to New York following the US operation to face prosecution on drug-related charges. The 63-year-old Venezuelan leader is due to appear in court on Monday.

He has previously denied criminal involvement.

Images of Maduro blindfolded and handcuffed by US forces have stunned Venezuelans.

Venezuelan Minister of Defence General Vladimir Padrino said on state television that the US attack killed soldiers, civilians and a “large part” of Maduro’s security detail “in cold blood”.

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Venezuela’s armed forces have been activated to guarantee sovereignty, he said.

‘A lot of Cubans’ killed

US President Donald Trump, speaking to reporters on board Air Force One on Sunday, said that “there was a lot of death on the other side” during the raids.

He said that “a lot of Cubans” were killed and that there was “no death on our side”.

Trump went on to threaten Colombian President Gustavo Petro, saying that a US military operation in the country sounded “good” to him.

But he suggested that a US military intervention in Cuba is unlikely, because the island appears to be ready to fall on its own.

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“Cuba is ready to fall. Cuba looks like it’s ready to fall. I don’t know how they, if they can, hold that, but Cuba now has no income. They got all of their income from Venezuela, from the Venezuelan oil,” Trump said.

“They’re not getting any of it. Cuba literally is ready to fall. And you have a lot of great Cuban Americans that are going to be very happy about this.”

The US attack on Venezuela marked the most controversial intervention in Latin America since the invasion of Panama 37 years ago.

The Trump administration has described Maduro’s abduction as a law-enforcement mission to force him to face US criminal charges filed in 2020, including “narco-terrorism” conspiracy.

But Trump also said that US oil companies needed “total access” to the country’s vast reserves and suggested that an influx of Venezuelan immigrants to the US also factored into the decision to abduct Maduro.

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While many Western nations oppose Maduro, there were many calls for the US to respect international law, and questions arose over the legality of abducting a foreign head of state.

Left-leaning regional leaders, including those of Brazil, Colombia, Chile and Mexico, have largely denounced Maduro’s removal, while countries with right-wing governments, from Argentina to Ecuador, have largely welcomed it.

The United Nations Security Council plans to meet on Monday to discuss the attack. Russia and China, both major backers of Venezuela, have criticised the US.

Beijing on Sunday insisted that the safety of Maduro and his wife be a priority, and called on the US to “stop toppling the government of Venezuela”, calling the attack a “clear violation of international law“.

Moscow also said it was “extremely concerned” about the abduction of Maduro and his wife, and condemned what it called an “act of armed aggression” against Venezuela by the US.

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