Velocity of Trump Effects on Bonds Worries Market

As investors stepped on the bond-rout gas on Monday, pushing Treasury yields to their highest levels in months, concerns among strategists ramped up.

Goldman Sachs, for one, warned clients that the speed of the move has them worried about a deeper fallout in interest-rate markets, including vulnerable economies around the globe.

Bond markets, which were closed Friday for the Veterans Day holiday, resumed a vicious selloff on Monday, marking a fifth-straight session of climbing yields beginning last week after Republican Donald Trump beat Democrat Hillary Clinton in the U.S. presidential election. The latest action pushed yields on the benchmark 10-year TMUBMUSD10Y, +1.76% 30-year TMUBMUSD30Y, -0.48% and two-year TMUBMUSD02Y, +3.98% notes to levels not seen in around a year. Prices and yields move in opposite directions. Bond prices and yields move in the opposite direction.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza