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U.S. 10-year Treasury yield rallies to 11-month high on Trump inflation bets

Published 11/10/2016, 08:06 AM
© Reuters.  U.S. Treasury yields jump on Trump inflation bets
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Investing.com - U.S. Treasury prices fell on Thursday, pushing yields to multi-month highs as traders reassessed the implications of a Trump presidency, with many seeing it ushering in higher economic growth and rising inflation.

The U.S. 10-year Treasury note was up 3.0 basis points at 2.092% in early morning trade in New York, after rising to as high as 2.101%, a level not seen since January 14.

The 30-year yield gained 0.9 basis points to 2.889%, also the highest since January.

Meanwhile, the two-year yield rose 2.9 basis points to 0.923%. Bond prices and yields move inversely.

Elsewhere, in Europe, yields on 10-year German Bunds were up by 12.2 basis points to 0.301%, the strongest since April, while those on equivalent maturity French bonds rose 14.3 basis points to 0.657%.

The U.K.’s benchmark 10-year gilt yields were 9.8 basis points higher at 1.357%, approaching the levels last held shortly before the Brexit referendum in June.

Market players have begun to speculate on the shifts in fiscal policy under President Trump, with many forecasting rising inflation on the back of higher government spending.

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