Matthew Morgan, head of fixed income at Jupiter, says Trump’s record is clear: “If you look at last time, his economic record was pretty positive for investors, whereas a Biden outcome has seen [an] economic performance that has been less than that.”
While tax cuts could provide a sugar rush, Vincent Mortier, chief investment officer of Amundi, Europe’s largest fund manager, says investors are likely to punish any yawning fiscal deficit.
He told the Financial Times: “We know that the US cannot afford to have long-term rates at, say, 5pc or more given the cost of the debt. With benchmark 10-year borrowing costs at 4.1pc and 20-year debt yielding 4.5pc, caution is warranted.”
Mortier added. “A party in the equity market can be stopped by the bond market for sure.”
Jan Nevruzi, US rates strategist at NatWest, notes that US 30-year yields rose almost 0.4 percentage points the week of the…
