POST-ELECTION US reflation trades have quietly subsided and the world’s sovereign bond markets have confounded many doomsters to roar back to life, dragging government borrowing rates back down over the past fortnight.
It’s not at all obvious as to why. But it may simply reflect trade war anxiety and related world growth concerns, or fears of another geopolitical shock with a new government due in Washington, or maybe even thoughts of sliding oil prices if US drilling goes up a gear. Or maybe it’s all three.
