Treasuries Move Back To The Downside On Election Day

Trading 04 Nov 2020 Donner votre avis

After ending the previous session modestly higher, treasuries moved back to the downside during trading on Tuesday.

Bond prices moved lower early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.3 basis points to 0.882 percent.

With the increase on the day, the ten-year yield ended the session at its highest closing level in almost five months.

The weakness among treasuries came as traders seem to be hoping for a definitive outcome from today's presidential election.

Democratic candidate Joe Biden holds a clear lead in national polls and is also leading in several key swing states in the race to defeat President Donald Trump.

Traders seem optimistic that the results of the election will be known at the end of the night without the need for lawsuits and recounts.

Trump has repeatedly raised questions about the legitimacy of mail-in ballots and has not committed to a peaceful transition of power.

On the U.S. economic front, the Commerce Department released a report showing new orders for U.S. manufactured goods showed a significant increase in the month of September.

The Commerce Department said factory orders jumped by 1.1 percent in September after rising by a revised 0.6 percent in August.

Economists had expected factory orders to surge up by 1.0 percent compared to the 0.7 percent increase originally reported for the previous month.

Trading on Wednesday may be impacted by whether or not the presidential election has a definitive outcome.

Reports on private sector employment, the U.S. trade deficit and service sector activity may also attract some attention.


The material has been provided by InstaForex Company - www.instaforex.com

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