Bonds around the world headed for their steepest two-week loss in at least 26 years as President-elect Donald Trump sends inflation expectations surging.
The Bloomberg Barclays Global Aggregate Index has fallen 4% in the period through Thursday. It's the biggest two-week rout in data going back to 1990. Federal Reserve Chair Janet Yellen contributed to the decline by saying Thursday that an interest-rate hike could come "relatively soon."
"We've seen a sharp and swift move since the election, which is pricing in the potential future policies of Trump," said Sean Simko, who manages $8 billion at SEI Investments Co. in Oaks, Pennsylvania. "The big question is to what extent these policies are going to be implemented, and how quickly are they going to be implemented."
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