The US bond market (^TYX, ^TNX, ^FVX) is seeing declines Monday morning ahead of the Election Day on Tuesday, November 5, and the Federal Reserve's own November meeting on Thursday, November 7; the 10-year Treasury yield still sitting high above 4.2%.

"What we're seeing that's unusual in a 21% up equity year is we're seeing volatility quite high, and we're seeing a lot of uncertainty around fixed income. And part of this is because... the fiscal priming that's been done through this post-COVID cycle has really set the economy up with a much stronger base," Easterly EAB Risk Solutions global macro strategist Arnim Holzer tells Yahoo Finance. "Now a longer-term issue around indebtedness, but a stronger economic base that leads to uncertainty in what the Fed can do."

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This post was written by Luke Carberry Mogan.