LONDON, Sept 11 (Reuters) - U.S. Treasury prices rallied
on Wednesday, pushing benchmark 10-year yields to a new 15-month
low, as the probability of a win in the November presidential
election by Democrat Kamala Harris rose after a televised debate
against Republican Donald Trump.
Ten-year Treasury yields dipped to a session
trough of 3.609% as prices rose, the lowest since June 2023.
The debate gave investors little clarity on key policy
issues, even as betting markets swung in favour of Harris after
the event.
Goldman Sachs last week said the U.S. economy would likely
get a bigger boost over the coming two years from a Harris win,
while a Trump win would undermine growth mostly due to increased
tariffs. Analysts also expect a Trump win to add more to debt
levels.
Investor sentiment was fragile on Wednesday, creating a bid
for safe-haven government bonds and low-yielding currencies such
as the Japanese yen and the Swiss franc and
weighing on U.S. stock futures.
Deutsche Bank strategist Jim Reid said it was "clearly
impossible to isolate the direct impact of the debate."
"The market for now seems to have some agreement with the
probabilities above as to how the debate went. We will see how
it resonates from here," he said.
Focus now turned to the release of monthly U.S. consumer
inflation data later in the session.
Two-year Treasury yields fell just over 4 bps to around
3.56%.