Trump and the Bond Market: Why a Flight From U.S. Treasuries Is Unlikely

FROM THE ARTICLE: Trump’s election made investors justifiably nervous. But a mass exodus from the U.S. Treasuries market is unlikely, both because the United States remains the most relatively safe investment option in a perilous world and because Trump’s policies will entrench the power of the superrich owners of Treasuries. The existence of an influential bloc of domestic owners should offer some solace to foreign investors rattled by the new administration’s nationalist rhetoric. But perhaps the main lesson for the holders of U.S. Treasuries is that the inertia in the global financial system is strong -- even in the face of a change like Trump.