With U.S. data releases in the black and the Fed ready to act, Treasury yields kept creeping higher over the recent weeks. Meanwhile, the ECB recently signaled it may extend its bond buying program at the current € 80bn per month beyond March 2017 (the final decision is likely to be announced on December 8th).
The victory of Donald Trump in the U.S. presidential election has led to widespread market
movements. After initial adverse movements, equities rallied and bond yields jumped as
Trump's initial statements reassured markets, calling for unity and pledging that he will be
the “president of all Americans”.
Risk aversion rose over the recent days as Election Day approaches in the U.S. and the
gap between Clinton and Trump in the polls has narrowed. During the period under review,
both equities and bonds delivered negative returns, while credit spreads widened and
energy commodities fell markedly.
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Fixed income markets have faced some pressures lately, as investors fret about less
accommodative monetary conditions going forward. In addition, higher energy prices have
fuelled bond yields, as both OPEC members and Russia...