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Actionable news in TLT: ISHARES 20+ YEAR TREASURY BOND ETF,

Bonds Plunge by $1 Trillion This Week as Trump Seen Game Changer

  • Door is open for Fed to hike in December, CBA’s Donaldson says
  • Selloff pushes German bund yield to highest since February

More than $1 trillion was wiped off the value of bonds around the world this week as U.S. President-elect Donald Trump’s policies are seen boosting spending and quickening inflation.

The capitalization of a global bond-market index slid by $450 billion Thursday, a fourth day of declines that pushed the week’s total above $1 trillion for only the second time in two decades, Bank of America Merrill Lynch data show. Global stocks gained $1.3 trillion in the same period. Yields on U.S. 30-year bonds, which are more sensitive than shorter maturities to the outlook for inflation, jumped the most this week since January 2009.

European government bonds extended their selloff Friday, with the yield on Italian 10-year securities climbing above 2 percent for the first time since September 2015, while benchmark German 10-year bunds declined for a fifth day, pushing the yield to the highest since February.

“We do view the election of Donald Trump as a game changer,” said Adam Donaldson, head of debt research at Sydney-based...


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