Bonds Plunge by $1 Trillion This Week as Trump Seen Game Changer
- Door is open for Fed to hike in December, CBA’s Donaldson says
- Selloff pushes German bund yield to highest since February
Is This Week's Bond Plunge a Sign of Things to Come?
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More than $1 trillion was wiped off the value of bonds around the world this week as U.S. President-elect Donald Trump’s policies are seen boosting spending and quickening inflation.
The capitalization of a global bond-market index slid by $450 billion Thursday, a fourth day of declines that pushed the week’s total above $1 trillion for only the second time in two decades, Bank of America Merrill Lynch data show. Global stocks gained $1.3 trillion in the same period. Yields on U.S. 30-year bonds, which are more sensitive than shorter maturities to the outlook for inflation, jumped the most this week since January 2009.