Goldman Warns Bond-Market Carnage Threatens Global Reflation
- Ten-year Treasury yields’ weekly surge is biggest since 2013
- Inflation bets in days after election seen as ‘self-defeating’
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The bond market’s tumble this week on President-elect Donald Trump’s proposals to boost fiscal spending and stoke inflation threatens to throw a wrench in his plans before he even takes office.
Benchmark 10-year Treasury yields rose this week by the most since the 2013 episode known as the “taper tantrum,” while inflation gauges climbed to 16-month highs in anticipation of the Republican’s proposals for infrastructure spending and tax cuts. The carnage spread worldwide, with more than $1 trillion wiped off the value of global bonds, according to Bank of America Corp. data.