The bond market rout started ahead of the U.S. presidential election as investors began pricing in the likelihood that president-elect Donald Trump would retake the White House on a platform of tariffs and tax cuts. Trump speaks during a meeting with Republican governors at Mar-a-Lago in Palm Beach, Fla., on Jan. 9.Evan Vucci/The Associated Press
The global bond market sell-off that started in the fall has accelerated into the new year, as investors brace for Donald Trump’s return to the White House and adjust to the possibility that the U.S. Federal Reserve is already nearing the end of its easing cycle.
This has raised borrowing costs around the world, even as central banks have continued cutting short-term interest rates. And it has ricocheted through financial markets, weighing on equities and other risk assets.
The trend is being led by the U.S. treasury market, where the yield on 10-year government…
