Trump Victory Spurs Surge in Bond Yields and Dollar

US Treasury yields surged as Donald Trump appeared poised to win the 2024 presidential election, raising concerns about potential tax cuts and tariff hikes that could increase the deficit and inflation. The 10-year Treasury yield rose significantly, reflecting investor worries about higher government borrowing and inflation. Trump's victory, along with a potential Republican control of the Senate, has prompted fears among 'bond vigilantes' about the impact on future borrowing and the Federal Reserve's ability to cut interest rates.