Global Traders "Up in the Air" as U.S. Election Looms

Either Obama, Romney Would Have Yield-Curve Implications

Investors and traders anxiously await the result of the November 6 U.S. Presidential Election, which is sure to bring implications for bonds, stocks and many other markets around the world.

A stronger than expected October employment report last week may help Barack Obama win a second term in the White House, but with millions of Americans still out of work, the race between the President and his Republican challenger, Mitt Romney, remains "very much up in the air."

"Traders say an Obama win likely forces investors to unwind steepening yield-curve trades placed on the prospect of Romney win," Live Squawk said. The trades are based on the idea longer-dated Treasury bonds will get hit as stocks gain on a Romney victory.

Also this week, fresh supply expected for the 10-year and 30-year U.S. Treasury sectors may add selling pressure. Elsewhere, the European Central Bank and Bank of England are expected to announce interest rate decisions, as is the Reserve Bank of Australia.