U.S. government bonds were selling off sharply on Wednesday after former President Donald Trump won the presidential election.
The 10-year yield surged 17 basis points in premarket trade to about 4.46%, briefly climbing as high as 4.47%, according to FactSet. The benchmark rate was poised to reclaim its highs from four months ago, threatening to push up borrowing costs for the U.S. economy.
Treasury bonds have been under pressure since the Federal Reserve cut interest rates in September, on robust U.S. economic data and jitters around Trump’s plans to push through additional tax cuts and tariffs, which could reignite inflation and increase the already large U.S. deficit.
