The Federal Reserve will adopt a gradual and cautious policy in the short term

Mr. Trump's victory will not change the outlook for a 25 basis point cut at this week's meeting, but central banks "need to remain vigilant" going forward, wrote Gregory Faranello, head of US rates at Amerivet Securities. "Wednesday's election result only reinforces our view of gradualism, caution, lack of forward guidance and an open mind," said Mr. Faranello. Investors dumped Treasuries in response to the US election result, sending yields higher. The 10-year yield is now at 4.451 per cent and the two-year yield at 4.287 per cent.