As new projections indicate a tighter race, with Vice President Kamala Harris emerging as a potential favorite, market participants could continue to adjust their positions.
The Fed's monetary policy decision, scheduled for Thursday, adds another layer of uncertainty, following an aggressive cut of 50 basis points.
Investors initially positioned themselves for a potential re-election of Donald Trump last week, but as the outcome remains uncertain, the dollar retreated.
In response to these uncertainties, short-term note yields have inched up, while longer-dated yields have softened as the markets adopt a 'wait and see' approach.
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