By Davide Barbuscia
NEW YORK (Reuters) – A recalibration of how the U.S. presidential election plays out is causing bond investors to bet yields stay higher for longer as November approaches.
Yields have risen sharply after President Joe Biden’s stumbling performance against Republican rival Donald Trump in the first presidential debate last month, which increased speculation about a second Trump win when voters go to the polls on Nov. 5. The benchmark 10-year yield rose about six points to 4.34% following the debate.
Some investors are betting on higher inflation under Trump because of trade and economic policies such as higher tariffs on imports, and profligate government spending along with lower tax revenues, which would boost fiscal deficits and U.S. debt levels. Trump’s team has said his pro-growth policies would bring down interest rates and shrink deficits.
Republican National Committee spokesperson Anna Kelly said in a…
