US President Donald Trump at a rally in Charleston, West Virginia, in August 2018. The worldwide rise of populist politicians such as Trump has changed how the markets react to large deficits. Photo: AFP
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Donald Trump, Brexiteers and other populist politicians mean market appeasers have replaced ‘bond vigilantes’ – for now

  • Markets once punished fiscal recklessness, but since the 2008 crisis they have increased their tolerance for deficits. This dangerous situation means the return of ‘bond vigilantism’ would be welcome

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US President Donald Trump at a rally in Charleston, West Virginia, in August 2018. The worldwide rise of populist politicians such as Trump has changed how the markets react to large deficits. Photo: AFP
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Goods are delivered as people shop in the King of Prussia mall in Pennsylvania. US economic data is looking brighter, and positive noises are being made on the trade front. Photo: Reuters
David Brown
Opinion

Opinion

Macroscope by David Brown

As recession fears recede in the US, the golden days might be over for government bond markets

  • With US economic data suddenly looking brighter and positive noises being made in the trade war, risk reversals could be round the corner. After years as sanctuaries for investors, government bonds may finally lose their mojo in 2020

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Goods are delivered as people shop in the King of Prussia mall in Pennsylvania. US economic data is looking brighter, and positive noises are being made on the trade front. Photo: Reuters
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