Treasury yields nudge in direction of the highs for the day as Trump confirmed as election winner

That’s the highest degree in 4 months and carries on from the surging run since October. And that is partially fueling the greenback good points on the day with EUR/USD now down practically 2% at 1.0715 and USD/JPY up 1.7% to 154.15 at present.

Trump’s home insurance policies are largely geared toward boosting progress, spending and almost about international commerce, tariffs and commerce conflicts are going to fire up some added drama. All of which markets are anticipating to feed into larger inflationary pressures in due time.

That’s partly why there’s a lot angst in bonds now but additionally if Trump digs into the fiscal checkbook i.e. extra borrowing, it does put upward stress on yields as nicely.

It is nonetheless too early to evaluate the precise nature and magnitude of how Trump’s presidency will influence the above points. However for merchants, the concerns are undoubtedly there already as evident within the bond market response we’re seeing.

This text was written by Justin Low at www.ubaidahsan.com.



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