10-year treasury yield falls to 4.3% amid election uncertainty

The 10-year U.S. Treasury note yield fell to approximately 4.3% on Monday, retreating from a four-month high of nearly 4.4% in the previous session.

10-year treasury yield falls to 4.3% amid election uncertainty

This drop comes as investors brace for the U.S. presidential election and the upcoming Federal Reserve policy decision this week. Recent market activity had pushed both the dollar and Treasury yields higher amid speculation that Trump might regain the presidency, with his proposed policies on immigration, tax cuts, and tariffs potentially heightening inflationary pressures. However, this morning, traders scaled back those bets due to increasing uncertainty surrounding the election outcome.

Fed set for 25 basis point rate cut this week, December cut expected

On the monetary policy front, the Fed is widely anticipated to implement a modest 25 basis point interest rate cut this week, following a more considerable half-percentage point reduction in September. Furthermore, markets are factoring in another quarter-point cut in December.