- The recent opinion polls indicated that Democratic candidate Kamala Harris and Republican Donald Trump are locked in a tight race to the White House, fueling political uncertainty.
- The winning odds of former President Donald Trump have fallen significantly, prompting some unwinding of the "Trump Trade" and dragging the US Treasury bond yields lower.
- The yield on the benchmark 10-year US government bond and the two-year Treasury note registered their biggest one-day decline in two months and nearly three weeks, respectively.
- A part of the decline in the US bond yields could further be attributed to rising bets for more interest rate cuts by the Federal Reserve, bolstered by signs of a weakening US labor market.
- Iran signaled that it would deliver a harsh response to Israel's late-October strikes on its territory, while the US directly warned Iran against launching another attack against its ally Israel.
- Tuesday's US economic docket features the release of the ISM Manufacturing PMI later during the US session, although it might do little to provide any impetus ahead of the US presidential election.
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