Cornelian's Kilpatrick: Will Trump deliver on his reflation promises?

Significant consquences for the UK

So yield curves are steepening at long last. This is great news as banks will be able to generate more capital, which will enable them to rebuild capital organically, recognise those pesky non-performing loans and even - dare I say it - start to inject capital back into the global economy.

But how long will the government bond sell-off last? Will US President Donald Trump be able to deliver on his reflation promises swiftly enough such that near-term disappointment in the growth trajectory is avoided?  This feels unlikely, but with evidence gathering of a global, synchronised economic upswing, any disappointment should be fairly muted. Perhaps of more interest is whether, further down the line, Trump overcooks fiscal stimulus resulting in a disorderly sell-off in bonds and equities, a stronger dollar and turmoil in emerging markets. Thankfully, given market myopia, thes...