Treasuries Face Risk of Trump Sweep ‘Disaster,’ Clocktower Says
- Chances of Trump win upgraded to 60% from too close to call
- Firm sees potential for more dramatic yield moves on Trump win
This article is for subscribers only.
Ten-year Treasury yields are at risk of approaching 5% ahead of the US election, if the odds of a Donald Trump-led Republican victory continue to rise, according to Clocktower Group.
If expectations build for a definitive Trump victory, “bonds will start pricing in higher level of fiscal profligacy,” Marko Papic, chief strategist at the asset manager, wrote in a note. “What happens if bond yields go up while the economy is slowing down? A potential market carnage.”