A win for Trump: Bond yields up stocks down?

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A win for Trump: Bond yields up stocks down?

Donald Trump’s victory in the US presidential election in November could lead to a rise in the rates of long-term U.S. Treasury yields, according to Edmond de Rothschild Asset Management strategists.

At the same time, Trump’s immigration plans, which primarily focus on deporting criminals, but will also aim to push millions of immigrants to move back to their respective countries, will put pressure on the US labor market and the wider economy, according to strategists. A rise in the bond rates could result in the fall of equities, which has been the case historically as investors are likely to invest in safe-haven assets.

Following the debate, ten-year U.S. Treasury yields surged to over three-week highs, nearing 4.5%, driven by increasing market anticipation of a potential Trump victory, according to analysts.

 

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