Treasuries Plunge Most in Four Decades as Trump Spurs Selloff
- Republican seen ramping up spending, sparking inflation gains
- U.S. 10-year yield rises above 2% for first time since January
Global Market Reaction to Trump's U.S. Victory
This article is for subscribers only.
Treasuries plunged, with 30-year bond yields climbing the most since at least 1977, amid concern that a Donald Trump administration and a Republican-led U.S. Congress will unleash a wave of spending to boost the U.S. economy, triggering a surge in inflation.
Adjusted for current yield levels, which are close to historical lows, the magnitude of the day’s rise hasn’t been exceeded in data compiled by Bloomberg going back to February 1977. Benchmark U.S. 10-year yields rose above 2 percent for the first time since January as a bond-market measure of inflation expectations climbed to the highest since July 2015. A gauge of the yield curve steepened as longer-dated debt underperformed.