Treasury Yields Edge Higher
The yield on the US 10-year Treasury note edged up to 4.91% on Tuesday, following a 3bps decline in the previous session, as US voters head to polls for the midterm elections and investors awaited key economic data, including the JOLTS report. Democrats are expected to gain control of the House, while the outcome of the Senate race remains more uncertain. The elections are widely viewed as a referendum on President Trump's second term. Meanwhile, oil prices rebounded following reports that the US had struck Iran's Qeshm Island, recovering some ground after plunging nearly 7% in the previous session. On the fiscal front, the US Treasury said it expects to borrow $618 billion in the fourth quarter, $10 billion less than its August estimate. The revision reflects a higher-than-expected opening cash balance, partly offset by lower projected net cash flows. Excluding the benefit of the larger initial cash cushion, however, borrowing needs are $24 billion higher than previously estimated.
The yield on the US 10-year Treasury note edged up to 4.91% on Tuesday, following a 3bps decline in the previous session, as US voters head to polls for the midterm elections and investors awaited key economic data, including the JOLTS report. Democrats are expected to gain control of the House, while the outcome of the Senate race remains more uncertain. The elections are widely viewed as a referendum on President Trump's second term. Meanwhile, oil prices rebounded following reports that the US had struck Iran's Qeshm Island, recovering some ground after plunging nearly 7% in the previous session.
On the fiscal front, the US Treasury said it expects to borrow $618 billion in the fourth quarter, $10 billion less than its August estimate. The revision reflects a higher-than-expected opening cash balance, partly offset by lower projected net cash flows. Excluding the benefit of the larger initial cash cushion, however, borrowing needs are $24 billion higher than previously estimated.