Traders work on the floor of the New York Stock Exchange during afternoon trading on October 03, 2024 in New York City.
U.S. Treasury yields were modestly higher on Tuesday as investors readied themselves for the presidential election.
Shortly after 10 a.m. ET, the 10-year Treasury yield was up by more than 4 basis points at 4.355%. The yield on the 2-year Treasury was also up more than 5 basis points at 4.232%.
One basis point is equivalent to 0.01%. Yields and prices have an inverted relationship.
Yields ticked higher during the day after the Institute for Supply Management's October reading for services came in stronger than expecting.
The services purchasing managers' index came in at 56.0, the highest reading since July 2022. Economists surveyed by Dow Jones were expecting a reading of 53.7.
The U.S. will head to the polls on Tuesday for the hotly anticipated presidential election. The final NBC News poll of the election indicates the race is neck and neck with Vice President Kamala Harris and former President Donald Trump tied at 49%.
Investors will also be paying close attention to which party takes control of Congress, as a division of power in Washington could make it harder for either presidential candidate to enforce their policies. A clean sweep by either Republicans or Democrats, on the other hand, could result in big changes to spending or tax policy.
Money Report
Factory orders fell to 0.5% in September, the Census Bureau said on Monday. This met economists' expectations, according to Dow Jones.
Later this week, the Federal Reserve will hold its policy meeting on Thursday. Traders are pricing in a 98% chance of a quarter-point cut, according to the CME Group's FedWatch Tool, following a half-point jumbo rate cut in September.
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