** US Treasury Yields Rise on Election Day Amid Economic Strength and Market Uncertainty

US Treasury yields have surged on Election Day, driven by strong economic data and heightened uncertainty surrounding the presidential race. A report by Bloomberg highlights a multi-month high for the two-year yield at 4.24%, while the 10-year yield rose to 4.36%. The uptick in yields comes despite a solid auction of $42 billion in 10-year Treasury notes, which drew strong demand.

Bond market volatility has spiked to its highest level in over a year, with traders bracing for turbulence regardless of the election result. Market analysts predict significant price adjustments in the bond market following the outcome, but it's unclear whether extreme moves are anticipated.

The ICE BofA MOVE Index has closed at its highest level since October 2023, and options on Treasury futures imply a potential 22-basis point swing in 10-year yields by week's end. The strong services data has fueled speculation that the Fed may need to maintain higher rates for longer.

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Source: https://www.wionews.com/business-economy/treasuries-slip-on-us-election-day-as-volatility-hits-one-year-high-report-773866