Bond Market’s Big Short Teeters With Stimulus Bets Taking a Hit
- U.S. 10-year yield falls most since March, German bonds rally
- Heavy bets against Treasuries struggle as Blue Sweep odds fade
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The U.S. election was supposed to pave the way for a sell-off in Treasuries. Yet the opposite has happened in a race that remains too close to call.
Treasuries jumped along with most other major government bond, as ballots tallied so far dashed expectations for a Democratic sweep and upended bets for major debt-financed stimulus spending. A victory claim by President Donald Trump only added momentum to the rally. With results in key states such as Pennsylvania, Michigan and Georgia likely to take time, uncertainty is poised to remain high.