When the news gets intense or weird, bonds often point to how the economy is processing the developments and provide hints to where it may be going. With President Joe Biden withdrawing from the November election and making way for Vice President Kamala Harris to take on Republican Donald Trump, the bond market hasn’t noticeably changed its bets. But as more information comes in, it might.
The bond market is not that interested in who wins the presidential contest, according to Dirk Willer, global head of macrostrategy and asset allocation at Citi Research.
“The market cares more about whether you have a divided government or not, rather than about which party runs the government,” Willer said.
If the parties have to share power, not as much gets done, Willer said. But the more government either party controls, the more they can spend and the more debt they can create.Â
“Investors have…
