The bond market is perhaps the single most reliable indicator of investors’ faith in a government — and by that metric, America is taking a big hit in the aftermath of Donald Trump’s election to the presidency.
Over the past two days, the U.S. bond market — which has been bullish for more than 30 years — lost more than $1 trillion in global trading, the worst loss in nearly 18 months.
”Trump’s election has been viewed as a game changer, with the potential for fiscal stimulus, pro-business reforms and protectionist measures all being priced in to markets,” said Mitul Patel, head of interest rates at Henderson Global Investors, in an interview with The Wall Street Journal.