U.S. Treasury yields were modestly higher on Tuesday as investors readied themselves for the presidential election.
Shortly after 7 a.m. ET, the 10-year Treasury yield was up by 2 basis points at 4.329%. The yield on the 2-year Treasury was also up more than 1 basis points lower at 4.191%.
One basis point is equivalent to 0.01%. Yields and prices have an inverted relationship.
The U.S. will head to the polls on Tuesday for the hotly anticipated presidential election. The final NBC News poll of the election indicates the race is neck and neck with Vice President Kamala Harris and former President Donald Trump tied at 49%.
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Investors will also be paying close attention to which party takes control of Congress, as a division of power in Washington could make it harder for either presidential candidate to enforce their policies. A clean sweep by either Republicans or Democrats, on the other hand, could result in big changes to spending or tax policy.
The October ISM Services PMI data — based on surveys sent to purchasing and supply companies — will be published on Tuesday, showing the rate of expansion in the service sector and potentially offering hints about the health of the economy.
Factory orders fell to 0.5% in September, the Census Bureau said on Monday. This met economists' expectations, according to Dow Jones.
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Later this week, the Federal Reserve will hold its policy meeting on Thursday. Traders are pricing in a 98% chance of a quarter-point cut, according to the CME Group's FedWatch Tool, following a half-point jumbo rate cut in September.
