Trump's Inflationary Actions Drive Bond Yield Volatility and Market Shifts
What happened
Concerns over fiscal deficits and potential inflation-induced rate hikes have prompted a sell-off across fixed income markets this year, according to reports. US yields are approaching global financial crisis levels, and the 30-year gilt rose above 6%, a level not seen since 1998. Ben Lord, manager of the M&G UK Inflation Linked Corporate Bond fund, noted that these high yields make the bond market compelling, a significant change from 2023.
Why it matters
The bond market has seen significant movement, with the Bloomberg Sterling Gilts index down around 3% this year. Lord stated that these yield levels are largely a function of US President Donald Trump’s inflationary actions, though he cautioned that there is no guarantee yields will remain high.
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Who's involved
- Donald TrumpUS President whose inflationary policies are affecting bond yields
- Ben LordManager of the M&G UK Inflation Linked Corporate Bond fund
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The entities involved
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AJ Bell
British investment management company
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
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Ben Lord
American musician
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