Treasurys Keep Rising On Covid-19 Resurgence, Election Results — Market Talk

Volatility To Be The Norm As Votes Are Counted — Market Talk
November 4, 2020
Global markets climb amid indecisive political situation in the United States
November 5, 2020

Treasurys Keep Rising On Covid-19 Resurgence, Election Results — Market Talk

Treasurys rally, sending the 10-year yield down to 0.754% from 0.768% Wednesday, as a resurgence of Covid-19 triggers risk aversion, Spartan’s Peter Cardillo says. Cardillo adds that election results pointing to a split government also pressure bonds. “Yields are down also because of the fact that the elections are basically savoring a gridlock situation,” he says. With Republicans likely keeping a majority in the Senate, large government spending is less of a risk, he says. “Congress is going to limit going wild with entitlements, with the Senate working like a buffer. There will be spending, but it will be more contained.”