The so-called Trump reflation trade - which anticipates increased inflation and rising interest rates - is showing signs of breaking down as many bond investors anticipate that actual inflation, rates, and economic growth won't rise nearly as fast under Trump as originally expected, according to How Investors Can Prepare for a Bond Bear Market .) Bloomberg. One key indicator suggesting this less than optimistic outlook is on the 10-year Treasury note, which rallied earlier this week in its longest bull streak since last summer. This price action signals to some investors that the long-anticipated end to the three-decade rally in bond markets may not have yet turned a corner. (See also: 10-Year Note's Big Advance "The wager against Treasuries, among the most resilient trades in the wake of Donald Trump’s election, is showing signs of crumbling," according to Bloomberg in a February 8 article. "The benchmark 10-year note gained for...
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