U.S. presidential election causes investors to brace, resulting in a drop in treasury yields.

On Monday, U.S. Treasury yields were lower as investors prepared for a busy week with the U.S. presidential election and the Federal Reserve's interest rate decision.

The yield on the was last down by more than four basis points to 4.16%, while the yield on was down by eight basis points, hovering around 4.28%.

Prices and yields move in opposite directions.

On Tuesday, the highly anticipated U.S. presidential election will occur, and investors will closely monitor which party will gain control of Congress.

If the U.S. House of Representatives and Senate are split or controlled by the same party along with a White House victory, there could be different consequences for the economy and markets.

The final poll by NBC News indicates a "tied" race between Vice President Kamala Harris and former President Donald Trump, both candidates having 49% support.

The Fed's interest rate decision at its policy meeting on Thursday is also a focus for investors, with Fed Chair Jerome Powell's comments providing insights into the Fed's expectations for the economy and interest rates in the near future.

According to CME Group's FedWatch tool, traders are predicting a 99% chance of a quarter-point interest rate cut, following the Fed's 50 basis points jumbo rate cut in September.

Several economic data points, including factory orders for September and the latest PMI reports, will be closely monitored by investors before the Fed's decision.