“With less than two months to go, polls have tightened ahead of November 8th US presidential elections, with Clinton’s post-Convention lead nearly evaporated,” Citi says in a report on Sunday. However, Citi says markets are only partially pricing in a Trump victory. US bond yields have been on the rise, but Citi believes this is not so much a result of Trump risk rising. “USD/MXN breaking higher is the clearest sign of Trump risk rising,” Citi says. While a Trump victory would open doors to greater potential for black swan events, Citi says it “continue[s] to regard reform potential as low”.

Source: The Edge Markets September 19, 2016 04:30 UTC