Trump Trades Are Upended as Treasury Returns Beat US Stocks
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US Treasuries are now outperforming stocks since Donald Trump was elected President, and some strategists say there’s room for those gains to run.
A Bloomberg gauge of US sovereign debt has returned 2.1% since the Nov. 5 vote, beating a gain of 1.6% from the S&P 500 Index including reinvested dividends. While long-end Treasuries declined on Tuesday after Trump imposed new 25% trade tariffs on Canada to Mexico, the prospect of further Federal Reserve interest-rate cuts is seen giving bonds a further tailwind.