Treasuries Are Hit as US election risks come into focus – US Market Wrap

The world’s largest bond market fell as traders assessed the potential economic implications of the November US election following last week’s presidential debate between Joe Biden and Donald Trump.

While many traders believe it is too early to begin positioning or reading too much into election headlines. Wall Street kept a close eye on presidential campaign news. Treasuries fell, as they had on Friday, with longer-term maturities underperforming shorter ones. Stocks edged slightly higher on a rally in tech megacaps. The dollar rose.

According to news reports, the Democratic National Committee is considering formally nominating Biden as early as mid-July to ensure his place on the November ballot. And a divided Supreme Court ruled that Trump has some immunity from criminal charges for attempting to overturn the 2020 election results, effectively ensuring that a trial will not take place before the November election.

Treasury 10-year yields approached 4.5%. The S&P 500 rose to around 5,475. Tesla jumped about 6%. Chewy whipsawed as Keith Gill – known online as “Roaring Kitty” – disclosed a passive stake in the online pet product retailer. Gill was sued for allegedly orchestrating a “pump and dump” scheme involving GameStop shares.

The euro climbed as French election results suggested there’s a smaller probability of extreme policies coming from the far-right.