U.S. 30-Year Yield Rises to 3% as Trump Stirs Inflation Concern

Parker: 10-Year Yield Jump a Significant Move Last Week

U.S. 30-year yields rose to 3 percent for the first time since January as Donald Trump’s election victory sends bonds sliding around the world.

The incoming U.S. president is driving speculation his spending plans will lead to greater government borrowing and quickening inflation. Benchmark 10-year yields climbed past 2 percent last week to a 10-month high.

Thirty-year bond yields advanced as much as seven basis points to 3.001 percent, according to Bloomberg Bond Trader data. The price of the 2.875 percent security due in November 2046 fell 1 1/4, or $12.50 per $1,000 face amount, to 97 18/32 as of 2:04 p.m. in Tokyo. The last time the yield was more than 3 percent was Jan. 6.

Traders are sticking to bets for the Federal Reserve to raise interest at its final meeting for the year next month. There’s an 84 percent chance of a move, futures contracts indicate. The calculation is based on the assumption the central bank’s benchmark rate will trade at the middle of the new range after an increase.

Bonds worldwide lost $1.218 trillion last week, surpassing the taper-tantrum of June 2013 as the largest ever slump in market value, according to Bank of America Corp. indexes. Global stocks added $985 billion in the same period, while the S&P 500 Index surged 3.8 percent in its best week since October 2014.

— With assistance by Benjamin Purvis

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