Bonds
Kazakhstan’s Trump Trade Is a $1 Billion Bet on Inflation-Hedging Bonds
- Central bank may sell gold options if price hits $3,100
- Mulls investing in infrastructure funds amid inflation concern
Astana, Kazakhstan.
Photographer: Taylor Weidman/BloombergThis article is for subscribers only.
Kazakhstan plans to buy $1 billion of inflation-protected US Treasuries in a wager that President Donald Trump’s policies will stall progress in bringing down inflation.
“Tax breaks, trade wars and protectionism, economic stimulus — these are all pro-inflationary rhetoric,” and they threaten to increase price pressures, according to Aliya Moldabekova, deputy governor of the National Bank of Kazakhstan. “There is a risk that inflation will not decline as it has been declining, and central banks will slow down rate cuts.”