U.S. Treasury yields are falling as Americans head to the polls for the U.S. presidential election on Nov. 5.
The yield on the 10-year Treasury is down eight basis points and hovering near 4.28%. The yield on the two-year Treasury is down four basis points and at 4.16%.
One basis point equals 0.01%. Yields and prices move in opposite directions.
Investors in the U.S. are gearing up for highly anticipated U.S. presidential and congressional elections.
Heading into the election, polls show a deadlocked race between current vice-president Kamala Harris and former president Donald Trump, with the two candidates having 49% support among decided voters.
Markets are also preparing for the U.S. Federal Reserve’s next interest rate decision scheduled for Nov. 7. Futures markets are pricing in a 25-basis point rate cut from the central bank.
In September, the Fed delivered a 50-basis point interest rate cut.
The interest rate will be followed by comments from Fed Chair Jerome Powell, which could provide hints about the central bank’s expectations for the U.S. economy moving forward.
Other market moving news expected out of the U.S. this week includes factory orders for September and the latest purchasing managers index (PMI) report.
Third-quarter earnings season also continues with prints this week from Palantir Technologies (PLTR), Thomson Reuters (TRI), Novo Nordisk (NVO), and Airbnb (ABNB), among others.
