Reflation Trades Survive Despite Mind-Bending Trump Twitter Run
- Breakeven rates rise on Biden gains, hopes for some support
- Credit Suisse sees Democratic sweep as ‘dominant narrative’
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Bond traders are holding tight to the idea that the U.S. economy will keep rebounding and inflation will accelerate even after President Donald Trump nixed talks for a major fiscal stimulus package.
With polls and betting websites showing increased odds of a presidential election victory by challenger Joe Biden -- and also the prospect that the Democratic Party could control Congress -- markets are factoring in an even bigger fiscal bump down the track despite Trump putting the brakes on a pre-election package.