Treasuries Move To The Upside Amid Election Uncertainty

(RTTNews) - Following the downturn seen over the course of the previous session, treasuries showed a strong move back to the upside during trading on Monday.

Bond prices gave back ground after an early advance but remained firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.2 basis points to 4.309 percent.

With the decrease on the day, the ten-year yield pulled back off the nearly four-month closing high set last Friday.

Treasuries benefited from the appeal as a safe haven amid uncertainty about the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.

With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.

The results of House and Senate races are also likely to be in focus, as the makeup of Congress could affect how much the next president can accomplish.

Traders are also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday.

The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.

Reports on the U.S. trade deficit and service sector activity may attract attention on Tuesday as traders await the results of the elections.