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In contrast with most global financial markets during November, the Canadian preferred share market was mostly oblivious to the surprise victory of Donald Trump in the U.S. presidential election. While equity markets reacted favourably to the more optimistic outlook, bond markets were dismayed by the potential for substantially higher U.S. budget deficits and increased inflation, leading to sharply higher yields and lower bond prices. Preferred shares, though, followed their own course, with prices initially extending the strong rally of October. A sharp decline in preferred share prices in the middle of the month erased earlier gains, however, and the market was unable to recover over the balance of the period. A series of large new issues in quick succession was responsible for the mid-month weakness.