Yield Curve to Steepen No Matter Who Is Elected President : BMO
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
Daniel Belton (Bank of Montreal)
Topics
Government Appointments, Political Changes
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Both Trump and Clinton’s policy platforms increase the federal deficit and spending, leading to a steeper yield curve in the near-term, BMO strategists Aaron Kohli and Dan Belton say in note.
Alert: HALISTER1- Prospect of Trump victory may drive immediate rally in rates
- Clinton victory to cause smaller steepening, especially if Congress remains Republican-controlled
- Senate election has been “woefully under-covered,” has just as many legislative implications
- Party split between president and Senate should limit curve movement
- Debt ceiling, increases in debt issuance, and potential FOMC changes most relevant for rates mkts
- Related story, USD/MXN Could Trade Above 20 If Trump Does Well in Debate: BMO
- Related story, Congress Election More Important to Mkts Than U.S. President: DB
Source: BFW (Bloomberg First Word)
People
Aaron Kohli (Bank of Montreal)
Daniel Belton (Bank of Montreal)
Topics
Government Appointments, Political Changes
To de-activate this alert, click here
UUID: 7947283