NEW YORK - U.S. government bond investors on Monday unwound some of the trades that were put in place on expectations of a second U.S. presidency of Republican Donald Trump, as U.S. President Joe Biden's exit from the presidential race was seen as improving the Democrats' elections odds.
Long-term U.S. Treasury yields, which move inversely to prices, declined in early trade. Benchmark 10-year Treasury yields were about two basis points lower to 4.219% and 30-year yields were nearly three points lower to 4.424%. Two-year yields climbed slightly to 4.519%. Those moves, although brief, reflected concerns that a Trump presidency would lead to higher inflation and wider U.S. federal government's budget deficits, which would spur more Treasury debt issuance.