US yields dip as ’Trump trades’ unwind in tight presidential race
Live Mint* Iowa poll shows Harris ahead of Trump, weighs on yields * US 10-year yields on track for largest fall since early Sept. 4 * US two-year yields show biggest decline in three weeks * US 2/10 yield curve bull flattens * US Treasury three-year notes auction show weak results By Gertrude Chavez-Dreyfuss NEW YORK, - U.S. Treasury yields slid across the board on Monday, as traders squared up positions ahead of Tuesday's presidential election due in part to a new opinion poll showing Democratic candidate Vice President Kamala Harris with a surprise lead in Iowa over Republican former President Donald Trump. Treasury yields, however, pared losses after an auction of U.S. three-year notes priced higher than expectations, suggesting market participants demanded a premium to take down the note. Yet analysts at JPMorgan said about 21 bps of the recent move higher in 10-year yields was accounted for by expectations that Republicans could win the presidency and both chambers of Congress. The U.S. yield curve, meanwhile, bull flattened with the gap between two-year and 10-year yields at 13.1 bps, down from 17.2 bps on Friday, and unwinding, at least temporarily, the curve steepening in place for the last few weeks.