US 10-year Treasury yields struggle below 0.80% amid Trump-Biden race

• US 10-year Treasury yields seesaw near three-week low flashed the previous day.
• Biden keeps the lead in the US presidential election race, Trump stays hopeful.
• Virus woes, Fed Chair’s comments tame stimulus hopes.

US 10-year Treasury yields look for a clear direction, down 0.7 basis points (bps), around 0.77% during the early Friday. The coupon slumped to the lowest since October 15 on Thursday before bouncing off 0.718% amid fresh chatters over the US elections.

Although the current President Donald Trump leads the vote tally, by a small margin, in Georgia, his overall electoral vote count, currently near 220, is way below his Democratic rival Joe Biden’s 260+ figures. Also, the recent news from Arizona and Pennsylvania offered additional hopes for the Democratic president in the US.

Check live updates for the 2020 US elections here.

While Trump’s attempt to block vote counts and challenges to the results of some states raised hopes of a mixed Congress, market optimism bolstered amid hopes of easy money from the stimulus-friendly party, i.e. Democratic Party. Even so, the recent challenges from the coronavirus (COVID-19) front, with the daily record of new cases in America, probe the risk-on mood.

That said, S&P 500 Futures print mild losses while stocks in Asia-Pacific stand on the other extreme by press time.

Global markets are prone to the US election news while October month employment numbers, including the headlines Nonfarm Payrolls (NFP), will offer an additional catalyst to watch.

Read: Nonfarm Payrolls Preview: Encouraging data but little action expected