US 10-year Treasury yields rally to five month high on blue wave hopes

• US bond yields surge to early-June top as Democrats remain market favorite.
• Trump’s smaller victories fail to supersede Biden’s lead in Kentucky.

US 10-year Treasury yields add five basis points (bps) to 0.92% as markets in Tokyo open for Wednesday’s trading. In doing so, the risk barometer probes the June month’s high of 0.959% amid risk-on markets.

Early polls suggest smaller victories of US President Donald Trump in Indiana, contrasts to the opponent Joe Biden’s notable lead in Kentucky. This strengthens the hopes of a blue wave, major Democratic victory, in both the American houses.

Read: 2020 US Elections: YouGov predicts Biden winning 382 votes

It should also be noted that the famous UK researcher YouGov predicts Biden’s landslide victory with 382 seats versus 270 required for the majority. Further, FOX predicted Democrats as a winner in Virginia.

Global markets are cheering the hopes of Democratic victory as they’re perceived to provide more stimulus and can provide a fresh start to Sino-American relations.

However, Trump is known for surprises and has already warned over the mail-in ballots, which in turn probe the risk-on mood.

Stay Tuned to: Four more years for Trump or a victory for Biden? – Live coverage