Market Extra: Is Trump’s tax proposal driving the bond market selloff?

A global bond selloff spread from the U.S. to Germany on Wednesday, with analysts and traders pegging the action to new details on President Donald Trump’s tax reform.

With further clarity on the exact policies Trump wants to see passed, the recent progress could placate investors who have complained that his legislative proposals have been too vague. If Trump manages to push his tax plan through Congress, it could stoke inflation pressures, eroding demand for Treasurys.

See: Text of tax-reform framework from President Donald Trump and Republicans

Yet the severity of the selling pressure seen mid-week suggested other forces were at work.

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