At some point, the gorgeous, three-decade-long bond rally had to come to a close, since all good things must end. But who would have thought Italy would join Donald Trump as the agent of its destruction.
On the day after the Nov. 8 election, U.S Treasury bonds took their biggest plunge in five years. Until then, bonds had gained 3.8 per cent in the year. In the summer, the yield on benchmark 10-year Treasuries was 1.3 per cent. By Friday, their yield had climbed to 2.38 per cent as investors hammered the sell button. Their fear is that Mr. Trump’s pledge to stimulate the economy with thumping great tax cuts and $1-trillion (U.S.) in infrastructure spending will trigger higher deficits and stoke inflation, and they’re probably right.Report Typo/Error