U.S. Treasury Yields Fall to Eight-Week Lows as Markets Digest Midterm Results

By Emese Bartha

Long-end Treasury yields fell to eight-week lows on Thursday as investors saw relief for bond markets from prospects of tighter fiscal constraints following the Democrat sweep in U.S. midterm elections.

Voters delivered a rebuke to President Trump and his party, stripping Republicans of congressional control amid widespread frustrations with the economy.

Yields fell across maturities, with the 10- and 30-year Treasury yields hitting eight-week lows of 4.837% and 5.229%, respectively, before recovering slightly but still trading lower on the day, according to Tradeweb. Two-year Treasury yields fell to a two-month low on Wednesday and last traded slightly above it.

"Gridlock could be the bond market's friend, but it won't fix the deficit," said Shari Hensrud, chief investment officer at MissionSquare in a note. "A Democratic Congress puts a stronger brake on further fiscal expansion, taking some upside risk out of long-term Treasury yields," she said.

That reduction in fiscal risk could support longer-term Treasuries and put some downward pressure on long-term yields, while the front end remains more tied to the Fed, inflation and labor markets, Hensrud said.

Reduced fiscal leeway could provide some relief for U.S. Treasurys, but at the same time, large deficits persist, and other key factors--such as the future trajectory of the dollar, regulatory risks in the AI sector, and the conflict involving Iran--remain influential, Michael Titz, head of investment office at Bankhaus Herzogpark said in a note.

Write to Emese Bartha at emese.bartha@wsj.com

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November 05, 2026 02:11 ET (07:11 GMT)