Bond market jitters start to weigh on post-Trump rally

LONDON (AP) — The rally in global markets since the election of Donald Trump as the next U.S. president was showing signs of running out of steam Monday as bond investors fretted over the inflationary impact of his policies.

[...] the view in bond markets is somewhat different, with investors fretting over the inflation outlook and the more lax spending environment.

The rise in U.S. bond yields has helped support the dollar as traders price in the prospect of bigger returns on their holdings.

ANALYST TAKE: "Expectations of an infrastructure spending spree, fiscal stimulus and deregulation are, however, intensifying the bond market sell-off via hopes of growth, inflation and, more importantly, interest rate rises," said Mike van Dulken of Accendo Markets.

The dollar has been particularly strong against the Japanese yen and that's really helped the country's exporters — the Nikkei 225 stock average added 1.7 percent to finish at 17,672.62.