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TREASURIES-Yields drop as betting markets up chances of Harris win
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TREASURIES-Yields drop as betting markets up chances of Harris win
Sep 11, 2024 5:01 AM

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%.

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