Traders Load Up on Last-Minute Rate Bets on Treasury Rally

Morgan Stanley’s Wilson Hopes Election Is a Market Clearing Event
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Bond investors are piling into trades that would profit from a rally in Treasuries, pricing in a scenario viewed as more likely under a US presidential victory by Kamala Harris while paring back bets seen as favoring a win by Donald Trump.

Since Monday, US options activity has been dominated by short-term bullish wagers, with traders looking to position for a possible Harris win after weekend polls showed the US vice president gaining ground against former President Trump. The shift has also been happening in futures.