Bond market rout 'overdone' says Investec chief

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Bond markets have gone too far in their Trump-triggered sell-off, the co-founder of Investec said today. 

“The bond markets have definitely overdone it,” said managing director Bernard Kantor. “Trump is an unknown character although people said the same thing about Reagan. 

“He was a wise man but I would be extremely nervous about Trump.”

Yields have leapt in recent days as investors rush away from bonds due to expectations inflation will rise under Trump, despite vague economic policies from his administration. 

The bond-market rout slowed slightly, with US 10-year Treasury yields pulling back to 2.197%. Some expect yields to rise to 2014 levels of 2.5% this year.

The Anglo-South African lender and fund management group, which sponsors the Ashes, reported higher first half profits with earnings per share up 1.8% to 22.7p.

Profits at its asset management division rose 16.6% to £82.3 million thanks to £1.1 billion of net inflows. Its banking arm suffered with operating profits down 7.1% to £212.8 million. 


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November 18, 2016 |
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