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Bears’ growl is not threatening enough to end the 30-year rally in government bonds
Last Friday, the yield on the benchmark 10-year US Treasury bond reached its highest since September 2014, surpassing its level in the aftermath of Donald Trump’s upset victory in America’s presidential election when international investors were positioning themselves for a surge in growth and inflation. While the so-called “Trumpflation trade” fizzled out at the beginning of last year, it has made a comeback over the past few months as financial markets reassess the outlook for the US economy following the enactment of a sweeping tax reform package last month and a renewed increase in inflation in November. ... (full story)