As the U.S. presidential election nears, investors are making last-minute portfolio adjustments. Michael Brown, senior research strategist at Pepperstone, notes, “With the election day approaching, we may see more hedging, de-risking, and position balancing.” In the Treasury market, Monday’s $58 billion 3-year note auction is drawing attention, particularly after notable yield “tails” seen in last week’s 2- and 5-year auctions. Currently, the 10-year U.S. Treasury note yield stands at 4.313%, down 5 basis points from Friday, while Germany’s 10-year Bund yield has slipped nearly 2 basis points to 2.385%, per Tradeweb data.
Bond markets are likely to stay volatile this week as both the U.S. election and major central bank decisions approach, according to Commerzbank Research’s Rainer Guntermann. “After last week’s notable spread and curve movements, markets remain on edge awaiting the election results,” he commented. While no eurozone government bonds are being issued Monday, the week will see over €20 billion in new bonds from Austria, Germany, Spain, and France.
