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US Treasury Yields Recover to Five-Month Highs on Blue Wave Hopes

  • US bond yields are at their highest since early June as Democrats remain the market favorites.
  • Trump’s small victories do not replace Biden’s leadership in Kentucky.

Yields on 10-year US Treasuries added five basis points (bps) to 0.92% as Tokyo markets open trading on Wednesday. In doing so, the risk barometer tests the June high of 0.959% in the midst of markets with a risk appetite.

The first polls suggest small victories for the president of the United States, Donald Trump, in Indiana, in contrast to the notable advantage of the opponent Joe Biden in Vermont and the one that is estimated could take in Kentucky. This reinforces hopes for a blue wave, a great Democratic victory, in both American houses.

Read 2020 US Elections: YouGov predicts Biden will win with 382 votes

It should also be noted that the famous British analyst YouGov predicts a landslide victory for Biden with 382 seats compared to the 270 needed for the majority. Additionally, FOX predicted Democrats as winners in Virginia.

Global markets are buoying hopes for Democratic victory as they are perceived to provide further stimulus and may spark a fresh start to Sino-US relations. However, you have to have the surprise factor in the case of Trump.

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Credits: Forex Street

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