Wall Street Bond Gurus Brace for Trump Shock, Expect Clinton Dud
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Dealers say Treasury yields would tumble Nov. 9 on Trump win
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‘The election event risk is asymmetric,’ BMO’s Lyngen says
Dealers in the $13.8 trillion Treasuries market are preparing for sharply divergent next-day reactions to the U.S. election outcome, girding against Brexit-like volatility while still expecting relative calm.
The day after Americans choose their next president, U.S. 10-year yields will either plunge by the most since the U.K.’s June vote to leave the European Union or hold near current levels. That’s according to the average forecasts of 11 respondents in a Bloomberg survey of the 23 primary dealers that trade with the Federal Reserve. Most strategists said yields will fall Wednesday if Republican Donald Trump wins the White House and will remain steady or rise if Democrat Hillary Clinton prevails…
Wall Street Bond Gurus Brace for Trump Shock, Expect Clinton Dud
