U.S. Treasury yields were mostly higher early Monday as investors prepared for a busy week likely to be dominated by Tuesday’s presidential election.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.852% was flat at 0.859%, after marking its largest monthly gain in over two years last Friday, while the 2-year note rate TMUBMUSD02Y, 0.156% edged 0.2 basis point up to 0.129%. The 30-year bond yield TMUBMUSD30Y, 1.640% rose 1.2 basis points to 1.648%.
What’s driving Treasurys?
The presidential election will likely overshadow economic data and central bank meetings this week, with analysts unsure whether a winner will be known on the night of the election.
Investors fear a drawn-out election outcome, with many saying markets would prefer to find out the winner soon after election night.
The Federal Reserve will conclude a two-day policy meeting on Wednesday, amid growing pressure on the central bank to deploy further policy support in face of a rapidly accelerating coronavirus pandemic.
See: This week will be full of key U.S. economic insights and Fed decisions overshadowed by the elections
In economic data, the Institute for Supply Management will publish its gauge of services sector activity at 10 a.m. ET. The data highlight of this week will be the official employment report on Friday.
What did market participants say?
“Timing on results could be delayed. Regardless of who wins the election, the market is certainly anticipating more fiscal aid. And that aid may not arrive until 2021,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities.
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