Rolling coverage of the latest economic and financial news
US government bond prices have rallied sharply overnight, as hopes of an early stimulus package faded.
Yesterday, the yield (or interest rate) on US 10-year Treasury bills jumped to four-month highs.
Related: Republicans confident they will keep Senate control after fears of backlash
The market is now less convinced about a #Biden win. 10-year Treasury yields broke their resistance line to touch 94bps to fall by 14bps as #Trump won some key states. Uncertainty might play against some large short Treasury positions, pushing yields further down. @SaxoStrats pic.twitter.com/2anT7HJEwP
US 10-year Treasury #yield doesn’t like this very much. Down a full 10 basis points as the #USElections2020 outcome still very uncertain. pic.twitter.com/CgJr9zRpsf
“At this stage, no clear winner in the US Presidential election has been declared. Once again, the polls have underestimated the depth of support for Donald Trump and it is possible he may well end up as the winner.
“In the short term, this is disappointing for markets and raises the prospect of several days or even weeks of uncertainty and possible legal challenges. Investors had been also been hoping that a clear victory would open the door to a massive stimulus package which would boost the US economy. This now appears unlikely, at least in the short-term, so we would expect to see some volatility today as markets digest the situation.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Investors around the world are gripped by the unfolding election drama in the US.
Related: US election 2020 live results: Donald Trump takes on Joe Biden in race for White House
Related: Trump to address nation as votes still being counted in key states – US election live
Biden is called to win Arizona (11), which leaves the key Rust Belt states of Wisconsin (10), Michigan (16) and Pennsylvania to decide the election.
But these won’t be called imminently and it could take days to decide final outcome, not even considering legal challenges prolonging the agony – A result today may not be possible, though if Biden clears 270 it seems difficult for Trump to mount a serious legal challenge.
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