(Bloomberg) Investors saw $337 billion wiped off the value of securities that comprise an index of global bonds in a single day Wednesday as Donald Trump’s election as U.S. president sparked concern his plan to boost economic growth will lead to a surge in inflation. The selloff spread further into European bonds on Thursday, as traders caught up with moves in U.S. Treasuries. Speculation that Trump’s victory and a Republican-led Congress will lead to a wave of spending, spurred the likelihood that inflation will pick up in coming months, which would in turn erode the value of bonds. The decline in bonds saw Bank of America Merrill Lynch’s Global Broad Market Index drop by about 0.7 percent on Wednesday. “Right now bonds are in some trouble,” said Barra Sheridan, a rates trader at Bank of Montreal in London. There is some concern that Trump “will be more fiscally expansionary, he will look to spend more money.” The U.S. 10-year yield was three basis points, or 0.03 percentage point, higher at 2.09 percent as of 12:09 p.m. in London, according to Bloomberg Bond Trader data. The yield jumped 20 basis points Wednesday, the most on a single day since July 2013. The selloff spread across the world, with bonds across Europe falling Thursday. The yield on 10-year German bunds climbed as much as eight basis points to 0.28 percent, its highest since May 2, while the yield on similar-maturity U.K. gilts rose for a fourth day to 1.35 percent, the most since June 23. Italian 10-year bond yields added nine basis points to 1.84 percent, and those on Spain’s climbed seven basis points to 1.35 percent. Fed Outlook Bonds are falling as traders boost their inflation outlook and increase bets the Federal Reserve will raise interest rates. Bonds had initially risen on haven demand as the early vote count showed Trump set to win the election, before changing direction. “Trumpeconomics implies a likely faster pace of Fed rate hikes next year,” said Robert Rennie, head of financial markets strategy at Westpac Banking Corp. in Sydney. “It is clear that this wave of populist vote has reflected, in part, dislike of tight fiscal, easy monetary policy. If we are now seeing a shift in the U.S., then that means markets will have to reprice this.” The U.S. 10-year note yield will climb to 2.30 percent by June, Rennie said. Trump, the 70-year-old real estate magnate, has pledged to cut taxes and boost spending on infrastructure by as much as $500 billion. His proposals would increase the nation’s debt by $5.3 trillion, the non-partisan Committee for a Responsible Federal Budget estimated. The government’s marketable debt has more than doubled under President Barack Obama, to a record of almost $14 trillion. Keystyle Learning Can Help You Fulfil Your Dream. Work, Study Or Live Abroad: Australia, UK, Canada, USA Or Ghana. Call Us On 09057644711, 09038944464 Or Click Here. For Adverts Placement, Inquiries, News Updates, Contact Us On WhatsApp: 08083609209. Send Articles For Publication To Editor@skytrendnews.com ]]>