Global bond markets may see squeeze in 2017

Tokyo

GLOBAL bond markets could face an unexpected squeeze in 2017 as competition for financing grows between US President-elect Donald Trump's promised major overhaul of US infrastructure and Chinese President Xi Jinping's ambitious plans for development of the Eurasian continent.

Funding demand - largely in bond markets - from these two sources alone is likely to run into trillions of dollars in coming years even without the huge sums that will be needed for infrastructure construction and renewal in many other parts of the world.