China has been selling U.S. Treasuries

China has been selling U.S. Treasuries

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Global bond markets decide Trump means more government spending, rising inflation, and a pick up in the speed on Federal Reserve interest rate increases.

Global bond markets fell to the tune of a more than $1 trillion loss this week after Donald Trump’s win in the U.S. presidential election. The market value of the Bank of America’s Global Broad Market Index, which tracks 24,000 bonds around the world, fell by $1.14 trillion this week. The only other week that witnessed a drop of $1 trillion or more was during the June 2013 “Taper Tantrum” when bonds sold off after then Fed chairman Ben Bernanke threatened to reduce bond purchases.