Big Rally on Election Revelations Fairly early in the domestic session, markets rapidly came to the realization that even if Biden wins the presidential election, the Senate is much less likely to end up with 51 or more democratic seats. That removes the biggest risks on the horizon for the bond market and traders traded accordingly. With election results still in limbo, the Fed coming up tomorrow, and NFP on Friday, bonds settled into a decisively sideways range (after that initial mega rally) to await their next source of inspiration. At the very least, it was a big victory in the fight to avoid 10yr yields moving quickly back above 1.0%. It remains to be seen whether it catalyzes a new push back in the other direction. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and
Refis Surge; Rates Bounce Back (Lower) on Election Revelations. Will It Last?