Donald Trump’s administration will be “inflationary” in the first year, says Rob Subbaraman, Nomura’s Head of Global Macro Research. Coupled with a large fiscal deficit, there is a “decent risk” US 10-year Treasury yields could be heading toward 5-6% this year, he argues. Outside the US, sovereign yields “in countries that have weak fundamentals” could rise “even faster,” adds Subbaraman. (Source: Bloomberg)
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