(Bloomberg) — US Treasuries fell and a gauge of bond volatility rose to the highest in a year as traders counted down to a presidential election that remains too close to call.
The yield on 10-year Treasuries rose three basis points to 4.31%, nearing a three-month high, with strategists and investors warning of outsized market swings on the results of the vote. The ICE BofA MOVE Index, a measure of implied fluctuations in yields, on Monday hit the highest since October 2023.
The Bloomberg Dollar Spot Index dropped 0.1%. Currency volatility also jumped, taking the cost of hedging the euro against the greenback to the highest in more than four years.
The US presidential race is deadlocked, with polls showing Americans narrowly split between Donald Trump and Kamala Harris. That sets the stage for market volatility whoever wins, especially if the elected president’s party also takes both houses of Congress.
“Markets are in a…
