The U.K. 10-year break-even rate, a measure of expectations for retail prices derived from government bond yields, rose to the highest in almost three years. That came after the Republican candidate’s triumph spurred speculation that he will ramp up spending to boost the U.S. economy, potentially widening the budget deficit and stoking inflation.

As a global bond selloff entered its second day, longer-maturity sovereign debt led the declines, prompting the yield curves in both the U.K. and Germany to steepen. Long-dated securities are the most sensitive to the outlook for inflation, which erodes the value of fixed-income payments from bonds.  Read More…