Stock Market News: Dow Set to Open Higher in Wake of Trump's Victory
The selloff in U.S. Treasuries Wednesday leaves them attractive at these yield levels, Pepperstone’s Michael Brown said in a note. Two-year Treasury notes in particular, trading at 4.25% are looking “rather oversold,” the research strategist said.
U.S. Treasury yields rose on Wednesday as Donald Trump won the presidential race with the yield increase being more pronounced on the long end of the curve.
“A degree of this move can be put down to concerns over greater issuance amid a potentially ballooning budget deficit,” Brown said.
However, the selling pressure also reflects a substantial re-rating to the upside of both medium-run growth and inflation expectations, he says.