Treasury yields fall after Des Moines Register poll favors Harris

U.S. government debt rose sharply on Monday morning, pushing yields sharply lower as traders abandoned the so-called Trump deal that leaned toward the prospect of higher inflation.

The 10-year note fell to 4.274% as the bullish Treasury curve flattened, meaning government debt grew more at longer maturities and drove related yields down at a faster rate than at shorter maturities. Movements occur after Des Moines Poll Registration showed Vice President Kamala Harris leading former President Donald Trump in Iowa, reversing what was expected to be a certain victory for the latter.

“While investors remain skeptical of the polls as a general theme, the fact that price action has previously been so one-sided in favor of the Trump deal speaks to the market’s willingness to buy the dip. At the end of the day, there is no doubt that this is a tight race that could go in many different directions,” said BMO Capital Markets strategists Jan Lingen and Weil Hartman.