The “inflation trade” that had gained steam in the weeks heading into the U.S. elections is now being unwound. Polls forecasting a Democratic sweep had many market watchers reckoning huge government spending programs that would help to ignite inflation. That won’t be the case now, and U.S. Treasury yields are dropping like a rock. The yield on the benchmark 30-year Treasury note is presently 0.74% Thursday morning. See on the daily chart for December U.S. Treasury bond futures that prices are rallying strongly, including producing a big and bullish “outside day” up on the chart Wednesday, to suggest a market bottom is in place and that prices are likely to rise further. Stay tuned!– Jim