Bonds

In trading ahead of the debate, Treasuries rallied as oil tumbled and after U.S. bank regulators released revised details on proposed bank-capital rule changes.

Treasuries have returned 1.7% this month through Aug. 28, on pace for a fourth straight monthly gain, according to the Bloomberg US Treasury Total Return Index.

In the blue-chip bond market, a democratic victory would be supportive for basic industry, capital goods and utilities sectors, but a negative for telecoms, technology, banks, and autos.

Economists are also forecasting faster and deeper cuts to borrowing costs over the next year, and see the central bank reducing the policy rate from the current 4.5% to 3% by next July.

In the run-up to Powell's Jackson Hole speech, Treasuries tumbled across the US curve, with the move led by shorter maturities.

The number of leveraged positions in Treasury futures has risen to an all-time high ahead of the central bank's annual economic symposium in Jackson Hole, Wyoming.

Fora Financial Asset Securitization, 2024-1, is the first for Fora Financial since 2021, and its third securitization overall. Tier 2 saw the greatest shift in credit distributions among the six credit tiers since the last deal.

Traders are pricing in 34 basis points worth of easing at the Fed's September gathering, trimming their expectations from a day earlier — and lowering the odds of a half-point cut at the next central bank meeting to about one-third.

The company is selling bonds in five parts, and the longest portion of the deal, a 40-year note, will yield 1 percentage point above Treasuries.

Many on Wall Street agree that an abrupt end to quantitative tightening, or QT, is unlikely, with policymakers signaling its rolloff of Treasury holdings will finish by year-end.