U.S. government debt prices got a slight lift on Tuesday as voters were set to head to the polls for the 2018 midterm elections.
The yield on the benchmark 10-year Treasury note was mildly lower, trading at 3.195 percent, while the yield on the 30-year Treasury bond fell to 3.427 percent. Bond yields move inversely to prices.
Trader focus will most likely be attuned to U.S. midterm elections on Tuesday, which could send ripples throughout capital markets. The Democrats are expected to resume control of the House while the Republicans are forecast to maintain their marginal majority in the Senate. This outcome is seen as positive for U.S. markets as, historically, equities have made solid gains in a government gridlock scenario.
If the GOP maintains a majority in both chambers, it could buoy stocks in the short term as it raises the possibility of further tax cuts. Meanwhile, a so-called blue sweep could put pressure on stocks as it may result in a reversal of some of the policies passed by Republicans to boost the economy in the near-term.
On the data front, Redbook Index figures are due to be released at 8:55 a.m. ET, while the Labor Department will publish JOLTs jobs numbers at 10 a.m. ET.
Meanwhile, the U.S. Treasury will auction $50 billion in 4-week bills and $30 billion in 8-week bills at 11:30 a.m. on Monday, and $26 billion worth of 52-week bills at 1 p.m. ET.