Treasury Yields Falls After Democratic Win
The yield on the US 10-year Treasury note went down to 4.93% on Wednesday, following the Democratic sweep of both chambers of Congress and President Trump's acceptance of the election results, which helped ease political uncertainty and risks. While the Democratic victory raises the prospect of tighter regulatory scrutiny, particularly in the AI sector, it is also expected to limit the scope for further tax cuts and government spending. The prospect of greater political gridlock could also constrain Trump's policy agenda, including his approach to tariffs and Iran. Meanwhile, the US Treasury said it expects to maintain nominal coupon and floating-rate note auction sizes at current levels for the next several quarters. As part of a structural change, the Treasury plans to shift the seven-year note from a monthly issuance schedule to a quarterly new-issue format, with two reopenings, bringing it in line with the ten-year note.
The yield on the US 10-year Treasury note went down to 4.93% on Wednesday, following the Democratic sweep of both chambers of Congress and President Trump's acceptance of the election results, which helped ease political uncertainty and risks. While the Democratic victory raises the prospect of tighter regulatory scrutiny, particularly in the AI sector, it is also expected to limit the scope for further tax cuts and government spending. The prospect of greater political gridlock could also constrain Trump's policy agenda, including his approach to tariffs and Iran.
Meanwhile, the US Treasury said it expects to maintain nominal coupon and floating-rate note auction sizes at current levels for the next several quarters. As part of a structural change, the Treasury plans to shift the seven-year note from a monthly issuance schedule to a quarterly new-issue format, with two reopenings, bringing it in line with the ten-year note.