Next political shocks on deck

Global bonds have tumbled after Republican candidate Donald Trump’s triumph boosted the view that the U.S. government will ramp up spending and potentially widen the budget deficit, stoking inflation. The selloff has been particularly acute in Italy, amid concerns that the anti-establishment wave that propelled Trump into power could spill across to December’s constitutional referendum, where a defeat for Prime Minister Matteo Renzi could threaten political stability.  See Italy’s bonds tumble as Trump win boosts referendum concern.

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