Economist Steve Hanke Warns of Bond Market Selloff Under Trump
· Business · Fortune, CNBC
Economist Steve Hanke has characterized current US fiscal conditions as a 'deadly cocktail' that is driving a significant selloff in the bond market. Hanke argues that 'bond vigilantes' have returned to punish reckless fiscal and monetary policies, pushing 10-year Treasury yields higher. He attributes this market pressure to three factors, with monetary supply growth exceeding the Federal Reserve's inflation targets being the primary driver. Hanke expects the 10-year yield to climb an additional 50 basis points, maintaining a bearish outlook on bonds for the foreseeable future.
Why it matters
Rising US Treasury yields can drive up global borrowing costs and influence international capital flows, affecting economic stability and interest rate environments worldwide, including in India.
Read the original report — Fortune
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