Dollar jumps as ‘Trump trades’ push US bond yields and bitcoin higher

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Dollar jumps as ‘Trump trades’ push US bond yields and bitcoin higher
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Wall Street prepares for ‘a long night for volatility’ as global market mood remains febrile

Traders betting that Donald Trump would defeat Kamala Harris in the closely contested US presidential election sent the dollar to its highest level since July, pushing up 10-year US Treasury yields and bitcoin prices as the Mexican peso hit a fresh two-year low.With several key states still undecided, the 10-year yield advanced above 4.34 per cent on Tuesday evening after falling to 4.25 per cent earlier in the day, according to data from Bloomberg.

“There is a hyped-up sense of anticipation as we await the results,” said Mark Dowding, chief investment officer at RBC BlueBay Asset Management. “We all know how much is at stake on this election outcome, but until the polls close we won’t know which way to jump.” Wall Street has been preparing for a long night, pausing software updates and booking hotel rooms for suburb-dwelling traders among other logistics.

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