How Donald Trump risks triggering a new bond crisis
10 months, 2 weeks ago

How Donald Trump risks triggering a new bond crisis

The Telegraph  

Donald Trump is scaring the moneymen. The former US president’s attempt to return to the White House is raising eyebrows on Wall Street, including among the so-called bond vigilantes. Coined by veteran investment strategist Ed Yardeni in the 1980s, the term describes debt traders who punish profligate politicians by selling bonds. The former prime minister’s decision to press ahead with a radical tax-cutting drive without a plan to slash spending was rejected by financial markets, forcing her to trade in one chancellor for another before prompting her departure. There are fears that history could repeat itself once again, with a potential US bond crisis having global ramifications for debt and borrowing costs.

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