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  • The US dollar catches a haven bid as the Democratic blue wave looks less likely. 
  • The 10-year yield retreats from five-month highs. 

Risk assets have taken a beating in the last hour or so with President Trump taking a lead in the key state of Florida, helping the safe-haven dollar regain poise. 

The dollar index, which tracks the greenback’s value against majors, has recovered to 93.48 to trade largely unchanged on the day, having hit a low of 93.09 early Wednesday. The US 10-year treasury yield has declined from the five-month high of 0.93% to 0.88%. 

With Florida going Trump’s way and betting markets skewing the same for North Carolina, markets have priced out the possibility of an easy victory for Democratic candidate Joe Biden. The focus now is on Pennsylvania results, which could take a few days.

“A split government would do little in living up to the optimism that investors have already built up around a Blue Wave and the supposedly enormous fiscal package that comes with it,” Bloomberg’s markets reporter Kriti Gupta noted in the live blog. 

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