Government yields in Europe have climbed since the election of Donald Trump last Wednesday. Whilst the rise is not as fast as that of US bond yields, analysts are gradually raising their forecasts for the critical government bond yields in Europe – notably France, Germany and Italy. As President-elect Trump is beginning to reveal the plans and policies that will define his administration, there are expectations of a major fiscal stimulus, which would increase the supply of bonds and boost inflation. This effect on the global markets is profound due to the size and significance of the US economy. Expect European government bonds to do better than Treasuries in the months ahead.