Tag: us elections

What is happening to the bond markets after a Trump victory?

What is happening to the bond markets after a Trump victory?

Financial Markets Explained
The bond markets were in the news for the two straight weeks since the U.S elections held on November 8th 2016. After an initial rally, bond markets fell sharply and continued to fall in the following days making it one of the most talked about asset in the financial media. It wasn't just U.S bonds but also across the world, including Japan and Europe. For example, yields on the 10-year government bonds in Japan rose to 0.035% on Friday, November 18th, 2016, up from 0.005% just the day before. It was the first time that yields rose. Even far flung economies such as Singapore, Malaysia, Thailand, bond yields spiked. In bonds, yields run inversely to prices; meaning that when bond prices fall, yields rise. Learn the basics of bonds here. Blame Trump's policies for rise in bond