U.S. Government bonds remain mixed ahead of U.S. presidential election result

The U.S. Treasuries traded mixed Tuesday as investors await the outcome of United States presidential elections of 2016. The yield on the benchmark 10-year Treasury note fell 1-1/2 basis points to 1.81 percent, the yield on long-term 30-year Treasury dipped 2-1/2 basis points to 2.57 percent and the yield on short-term 2-year note bounced 1 basis point to 0.826 percent by 12:00 GMT.

Treasury prices are likely to remain highly volatile ahead of the United States’ presidential election scheduled for Tuesday, November 8, 2016. We suggest that investors should retain their positions until the election result is revealed and also avoid creating any new positions.

In part helping to move markets, the US Presidential election was thrown another wrinkle (or had one ironed out, depending on political viewpoint) FBI Director Comey indicated no charges were recommended against Hillary Clinton following the agency’s reopening of their email investigation. This should clearly serve to boost Clinton’s chances of winning the Presidency on today.

Markets now look ahead to what stands to be a relatively light session on Tuesday as markets will likely be fixated on election coverage, alongside a 3-year note auction earlier in the session.

Meanwhile, the S&P 500 Futures traded 2.75 points lower at 2,126.25 by 12:40 GMT.