World Economy

Treasury Yields Remain Flat as Democrats Secure Congressional Control

Treasury yields held relatively steady Wednesday following Democratic victories across U.S. midterm elections. The 10-year Treasury yield rose less than 1 basis point, while the 30-year bond yield gained 1 basis point to 5.334%. The shorter-term 2-year note yield added 1 basis point to 4.01%. Democrats secured majorities in both the House and Senate, flipping Republican-held seats in Iowa, Kansas, North Carolina, Ohio, South Carolina, Maine and Texas. The party also won key gubernatorial races in Ohio and Texas. Market analysts say the Democratic gains could constrain federal spending by the Trump administration, complicating legislative efforts. Traders at JPMorgan identified reduced deficit spending as a key focus for markets post-election. Budget negotiations may involve wading through a government shutdown, they said.