Washington | The United States is hurtling towards another budget crisis which could drive up borrowing costs as weakening political resolve to tackle spending, along with increased reluctance to unwind massive Trump-era tax cuts in the lead-up to next year’s presidential election, make further congressional chaos likely.

Experts say this could lead to a deficit blowout that will push US Treasury yields beyond their recent surge to 16-year highs. The US 10-year Treasury yield, which serves as a benchmark for global borrowing, briefly rose to 4.88 per cent after the release of robust non-farm payrolls data on Friday, its highest level since 2007, before easing back to 4.8 per cent.