“Predictions of Trump’s Election Victory Trigger Global Market Turmoil: Bond Sell-Offs Surge Amid White House Race”

The prospect of Donald Trump winning the U.S. Presidential election has sparked chaos in financial markets. RadarOnline.com reports that investors are selling off bonds globally as the race between Trump and Kamala Harris tightens with just weeks remaining until election day.

Robert Dishner, a senior portfolio manager at Neuberger Berman in London, stated, “With less than two weeks until the U.S. elections, concerns about the fiscal outlook and the potential for rising inflation have intensified.”

Fears of a Trump victory have driven bond yields higher, though prices have dropped as traders adjust their forecasts following the Federal Reserve’s 50 basis point rate hike last month.

The U.S. 10-year Treasury yield surged to 4.22% on Tuesday, its highest since July, while 10-year German bond yields reached their highest since early September. In Asia, Australian benchmark yields also jumped, climbing by as much as 16 basis points.

JPMorgan strategists Jay Barry and Srini Ramaswamy commented on the potential outcomes of a Democratic or Republican sweep, noting that either scenario would likely result in fiscal expansion compared to a divided government. They also warned that fiscal concerns could intensify under a GOP sweep, with Trump’s economic plans projected to increase the U.S. national debt by $7.5 trillion, compared to $3.5 trillion under Harris.

Election betting odds show Trump with a 57% chance of reclaiming the presidency, up from 48% in late September. However, a Reuters/Ipsos poll still shows Harris leading Trump 46% to 43%, and the two candidates are neck and neck in seven key battleground states.