From Kris Sayce – Port Phillip Insider (Australia) –
An unexpected outcome
Two weeks ago we looked at US government bond yields.
We mused on whether the ‘risk’ of a Donald Trump presidency would cause investors to ditch their usual kneejerk reaction of buying US government bonds.
We wondered if a Trump presidency would also result in a falling US dollar, as investors opted for ‘safer’ assets outside the US.
We wondered all this as we saw government bond yields fall, along with the US dollar.
Since then, US government bond yields have indeed risen.