U.S. Treasury yields experienced a slight increase on Tuesday in anticipation of the upcoming presidential election.

The 10-year Treasury yield rose by just over 1 basis point to 4.323%, while the 2-year Treasury yield increased by more than 4 basis points to 4.218%.

This rise in yields followed a stronger-than-expected reading from the Institute for Supply Management, which reported a services purchasing managers’ index of 56.0, surpassing economists' expectations of 53.7.

As the nation approaches the highly anticipated election, the contest between Vice President Kamala Harris and former President Donald Trump is expected to be closely contested.

Investors are also focused on the potential shift in Congressional control, which could complicate policy enforcement for either candidate.

A unified government could lead to significant changes in spending and tax policies.

Later this week, the Federal Reserve is set to hold its policy meeting, with traders anticipating a 98% likelihood of a quarter-point rate cut, following a half-point reduction in September, according to the CME Group’s FedWatch Tool.