Two-Year Treasury Yield Falls to Two-Month Low as Democrats Sweep Midterm Elections
By Emese Bartha
The two-year Treasury yield fell to a two-month low as yields slipped across the board in Asian trade Wednesday, with early results from the U.S. midterm elections showing a Democratic sweep.
Voters delivered a rebuke to President Trump and his party, stripping Republicans of congressional control amid widespread frustrations with the economy.
The two-year Treasury yield fell to 4.546%, the lowest level in two months, before recovering slightly to last trade 0.8 basis point lower at 4.604%, according to Tradeweb. The 10-year Treasury yield fell 1.5 basis points to 4.934%.
"We expect a shift in power of Congress to lead to a slightly more expansionary fiscal policy while closing the door for major spending pushes--like President Trump's demand for $1.5 trillion to Pentagon in the budget," Elisabet Kopelman, U.S. economist and Federal Reserve watcher at SEB, said in a note.
"This is not a bad thing for bond markets given that budget deficits are already on an unsustainable path but not enough for a sustainable improvement either," she said. "Neither party, including the president, currently seems to be focused on the budget deficit."
Write to Emese Bartha at emese.bartha@wsj.com
(END) Dow Jones Newswires
November 04, 2026 01:48 ET (06:48 GMT)
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