Traders Flock to a Trump-Fueled Bet on Higher US Bond Yields

Nighthawk said:
The trade has been touted by a chorus of Wall Street strategists in recent days, with Morgan Stanley and Barclays urging clients to prepare for sticky inflation and higher long-term bond yields in another Trump term.
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Hmmm markets not reacting to any of this....nasdaq closed at another historic high yesterday.....
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Even if this becomes reality stocks will still push all of that aside and continue to rally. A little sticky inflation means nothing now to stocks.
 
(BLOOMBERG)

Trump bets
Looking further ahead, traders in the $27 trillion Treasury market are betting on higher long-term bond yields as Wall Street starts to adjust for Donald Trump’s potential return to the White House. Investors have been buying shorter-maturity notes and selling longer-term ones after Trump came out ahead of President Joe Biden in the first presidential debate. “It’s still too soon to fully price in an election outcome — but probably not too early to leg into it,” said Subadra Rajappa, head of US rates strategy at Societe Generale SA.
 
The liberal media narrative has been established for the remainder of the campaign;

If markets are up, it's on anticipation that the GOP will not sweep everything.
If markets are down, it's because Trump is gaining in the polls and everyone fears certain doom.

I would have more respect for these idiots if they had followed their own advice from Paul Krugman after Trump won in 2016 to "sell everything now because the market will crash and never recover".
 
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