Quote:
Originally posted by sgtclub
Dissent. They were down yesterday right after the polling rumors came out of a big Kerry victory.
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Another, even more sophisticated explanation:
- "The price action suggests the market believes Bush has got it," said David Ader, interest rate strategist at RBS Greenwich Capital. "The initial reaction is a relief trade which benefits stocks and hurts bonds."
Flows into equities often come at the expense of safe-haven government debt. The benchmark 10-year dropped 19/32 in price, lifting yields to 4.12 percent from 4.06 percent late Tuesday.
Bond dealers also assume a Bush White House will be more likely to run high budget deficits, and there will be a need to issue more Treasuries than a Democratic presidency.
(source)
