Treasury Yields Fall as Democrats Sweep Congress

2026-11-04 08:30 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note went down to 4.93% on Wednesday, as traders react to the Democratic sweep of Congress in the midterm elections.

While a Democratic victory raises the prospect of tighter regulatory scrutiny, particularly on AI, it is also seen as limiting the scope for further tax cuts and government spending, easing concerns over increased federal borrowing.

Additionally, tighter AI regulation could weigh on growth and reduce the need for further interest-rate hikes.

The odds for a 25bps rate increase by the Fed in December currently stand around 77%, below 84% a week ago.

Meanwhile, Treasury’s quarterly issuance plans are due on Wednesday.

On Monday, the Treasury said it expects to borrow $618 billion in Q4, $10 billion less than its August estimate.

The revision reflects a higher-than-expected opening cash balance, partly offset by lower net cash flows.

Excluding the benefit of the larger initial cash cushion, however, borrowing needs are $24 billion higher.



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