Investors are preparing for the US presidential election

U.S. Treasury yields were lower on Monday as investors prepared for a busy week as voters head to the polls for the U.S. presidential election and the Federal Reserve's next interest rate decision.

The yield 10-year Treasury Department recently fell by more than six basis points and settled at around 4.295%. The yield on the 2 years treasury recently fell by more than four basis points to 4.158%.

One basis point is equal to 0.01%. Yields and prices move in opposite directions.

Investors are preparing for the highly anticipated US presidential election on Tuesday. They will also be paying close attention to which party will take control of Congress.

Depending on whether the U.S. House and Senate are divided or controlled by the same party, resulting in a White House victory, this could have different effects on the economy and markets.

The latest NBC News poll on the election shows a “deadlocked” race between Vice President Kamala Harris and former President Donald Trump, with the two candidates tied at 49%.

Investors are also focused on the Fed's interest rate decision at the central bank's policy meeting on Thursday. The decision follows comments from Fed Chair Jerome Powell that could provide clues about the Fed's expectations for the economy and interest rates in the coming months.

“10-year UST yields have been rising for several weeks and are testing downtrend resistance at 4.35%. The FOMC is expected to cut rates on Thursday and we expect yields to eventually fall below 4% by year-end,” Piper Sandler chief marketing engineer Craig Johnson said in a note to clients.

According to CME Group's FedWatch tool, traders have recently priced in a 99 percent chance of a quarter-point rate cut. This follows the Fed's massive 50 basis point interest rate cut in September.

Ahead of the Fed's decision, investors will be paying attention to several economic data, including September factory orders expected on Monday and the latest Purchasing Managers' Index (PMI) reports on Tuesday.