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2026-11-05 11:32:33
[US Treasuries Rise for Second Consecutive Day: Democratic Victory May Constrain Spending, 10-Year Yield Drops to 4.84%] (1) US Treasuries are poised to rise for the second consecutive trading day; the Democratic Party’s sweeping victory in the midterm elections has fueled market expectations that the Trump administration’s tax and spending plans may be constrained. (2) Yields on all maturities of US Treasuries fell by at least 3 basis points, with the benchmark 10-year Treasury yield dropping to 4.84%, the lowest level since September 10. (3) The US dollar index fell 0.2%, after recording its biggest single-day drop in two months in the previous trading day. (4) George Boley, chief fixed income investment strategist at Allspring Global Investments, said in a report that the market seems to welcome the election results because the power transition is smooth and orderly, and the future policy agenda is expected to be more moderate; the fiscal deficit may shrink next year, which is good news for bond investors. (5) The Democratic Party’s sweeping victory has injected vitality into the US bond market; the market expects that if Trump finds it more difficult to push through his spending plans, the issuance of US Treasury bonds may be limited.
