The yield on Euro zone government bonds at auction on Thursday, November 10, reached multi-month peaks — after a record over several years increased the yield of US government bonds. According to Reuters, this happened because of fears of investors about the fact that the policy of Donald trump, increasing the budget expenditure and the disruption of trade agreements with foreign partners, acceleration of inflation.
To 18:15 GMT the yield on 10-year government bonds in Germany rose by 9 basis points to 0,3072% of the maximum from the end of April. The yield on 30-year bonds by 8 basis points to 0,943% — a peak since the end of may.
The yield on French 10-year government bonds rose 16 basis points to 0,6985% (at 16:18 Moscow time it reached a peak 0,7123%). The yield on the 30-year by 20 basis points to 1.5226 levels%.
The yield on Spanish 10-year bonds climbed 16 basis points to of 1.4301%. The yield on the 30-year bond soared 19 basis points, to 2,6303% — a similar level (2,699%) was observed on 24 June, when the referendum on British exit from the EU.
The yield on 10-year government bonds of Italy has reached 1,9271% — one-year high amid forthcoming in the December constitutional referendum. According to Reuters, investors are thinking about initiated by Prime Minister Matteo Renzi referendum on constitutional reform on December 4th. Renzi said he was ready to resign if reform not approve.
On Wednesday, the yield on 10-year U.S. Treasury bonds, which soon after the announcement of the victory of trump fell to a record in June (the month when held a referendum on the British exit from the EU) 14 basis points, soared to 10-month peaks because of increased inflation expectations. That day paper, USA showed the highest volatility among all asset classes.
The election of the 45th President of the United States took place on 8 November. Republican candidate Donald trump won a victory, gaining more than 270 electoral votes. Investors expected a victory of the Democratic candidate Hillary Clinton, who is considered to be more predictable politician. Trump, in their opinion, threatened the markets with uncertainty in fiscal, monetary and trade policies.