Bond Market Falling - High Deficits Expected

We have a thread on the expanding stock market, go 401k!
But also consider bonds and what they’re signaling: debt is expected to increase even faster under Trump.
Current US Debt $36T.

“Donald Trump won decisively in the U.S. presidential election and the U.S. bond market celebrated by falling, at least in the immediate aftermath of the news. The market’s reaction suggests that many investors are expecting a more inflationary environment as a result of the Trump administration’s second-term policies.

Many investors expect that the federal government under Trump will maintain high deficit spending amid accommodative rate policy from the Federal Reserve…..

….For now, stock investors are focused on the potential for a corporate profit boost, deal making and other expansion that might come with a Trump administration’s light-touch approach to regulation and taxes.

But there are signs in the markets that investors are thinking about the potential for future inflation. A market measure of 10-year inflation expectations also rose on Wednesday, and is close to its highest level of the year.”


https://www.bankrate.com/investing/...-is-this-a-good-time-to-sell-long-term-bonds/


https://www.nytimes.com/2024/11/07/...ytcore-ios-share&referringSource=articleShare

 

it will really impact us down the road, after Trump is out of office. Not sure younger voters realize they will be on the hook for our bill.
I’m surprised how little this was discussed during any campaigns. Haley was one of the few that talked about it.