Why Real Bond Yields May Unravel QE Thread Work in Europe

Bloomberg Video

Nov.21 -- Investors who buy at Monday’s U.S. two-year note sale risk losing money as the Federal Reserve raises interest rates, according to Nomura Holdings Inc., one of the 23 companies that trade with the central bank. Two-year yields, among the most sensitive to what the Fed does with its benchmark, climbed to 1.08 percent in early Asian trading, approaching the highest level since 2010. Bonds have slumped and yields surged this month on expectations President-elect Donald Trump’s spending plans will lead to faster inflation. The Fed will increase rates for the first time in a year when it meets next month, futures contracts indicate. Aon Hewitt Head of Asset Allocation Tapan Datta discusses with Anna Edwards and Yousef Gamal El-Din in London and Manus Cranny in Dubai on "Bloomberg Daybreak: Europe."