BlackRock Investment Institute warns that the market may underestimate the risk of any usa presidential candidate questioning the election results next month.

Boivin, Managing Director of BlackRock's research department, the world's largest asset management company, believes that a controversial election result could lead to "several weeks of highly disruptive legal battles," which could disrupt asset prices.

Usa Treasury bonds have been struggling in a selling spree, with the benchmark 10-year yield rising more than 40 basis points this month while the stock market remains near historic highs.

Boivin said in an interview that trying to trade the usa election is "futile," and the most concerning scenario is a controversial election outcome. He said, "I don't think this scenario has been priced in. If you want to be prepared for a situation that may require a response, I think this is one of the potentially unfavorable situations for the market."

The intense competition in the usa presidential election is making it increasingly likely that voters and investors may have to wait for the final results after election day, especially if any candidate chooses to challenge the vote count in one of the key swing states.

In recent days, the gambling market has become increasingly bullish on Trump's chances of winning. The likelihood of this outcome has raised a measure of the dollar to a three-month high and is expected to achieve the best month since 2022. According to Standard Chartered's calculations, about 60% of the recent rise in the dollar can be attributed to the prospect of a Trump victory.

Meanwhile, the rise in usa Treasury bond yields is partly due to Trump's potential imposition of high tariffs during his presidency, thereby increasing inflationary pressures.