Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices

Report on Business

Economic Insight

Delving into the forces that shape our living standards
for Globe Unlimited subscribers

Entry archive:

How political chaos in Italy is affecting global bonds Add to ...

Subscribers Only

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

Follow on Twitter: @ereguly

Also on The Globe and Mail

As many as 2,000 Alitalia jobs at risk: sources (Reuters)

Next story

loading

In the know

The Globe Recommends

loading

Most popular videos »

Highlights

More from The Globe and Mail

Most popular