LONDON, March 29 (Reuters) - The reflation trade that has pushed government bond yields sharply higher over the past six months has come to a halt, BlackRock’s head of global bonds Scott Thiel said on Wednesday.
“Fundamentally, the reflation trade that we’ve seen since October has played itself out,” Thiel told reporters at a conference in London.
The rise in bond yields intensified after Donald Trump was elected U.S. President in November, on expectations he will enact extraordinary spending measures.
Thiel said that while expectations for tax reforms have been scaled back after the failure to pass healthcare reforms last week, he expected some form tax relief to be implemented. (Reporting by Dhara Ranasinghe, Writing by Abhinav Ramnarayan; Editing by John Geddie)