Treasuries Lead Global Bond Rally as Trump Set to Win Election
- Investors seek havens as Trump seen ushering in volatility
- At one point, yields had dropped the most since Brexit vote
Is the Market Overreacting to the Election Results?
U.S. Treasuries led a global bond rally as Republican Donald Trump was poised to pull off a huge electoral upset and become the 45th president of the United States, a repudiation of the political establishment that’s jolting financial markets even as it promises to reshape America’s relationship with the world.
Benchmark Treasuries at one point surged the most since June on the prospects of a shock victory for Trump, who’s criticized officials from Fed Chair Janet Yellen to congressional leaders. He’s seen as likely to trigger volatility in financial markets that may shatter confidence the central bank will increase interest rates next month. Odds of a hike in December dropped as Trump’s victories in battleground states piled up.