“All is not over, with further conviction of a ‘red wave’ ahead potentially seeing yields eyeing further upside, which may translate to a stronger US dollar,” writes Yeap in a Nov 6 note.
While the results of the US presidential elections are still too early to call, markets have been moving ahead to price in Republican presidential nominee Donald Trump’s playbook, says Yeap Jun Rong, market strategist at IG.
Treasury yields and the US dollar have surged, reflecting mounting expectations that Trump’s inflationary policies may materialise. The US 10-year yields surged 18 basis points (bp) in early trading, while the US two-year yields are up 10bps.
