Lates News

US Treasury bonds are poised to rise for a second consecutive trading day. A sweeping Democratic victory in the midterm elections has fueled market expectations that the Trump administration's tax and spending plans may be constrained. Yields on Treasuries across maturities fell by at least 3 basis points. The benchmark 10-year Treasury yield dropped to 4.84%, its lowest level since September 10. The dollar index fell 0.2%, following its largest single-day decline in two months in the previous session. George Bory, chief investment strategist for fixed income at Allspring Global Investments, said in a report: "The market appears to be welcoming the election results, as the transition of power is smooth and orderly and the future policy agenda is expected to become more moderate. The fiscal deficit may narrow next year, which is good news for bond investors." The Democratic sweep has injected vitality into the U.S. bond market. The market expects that if it becomes harder for Trump to push through spending plans, the scale of U.S. Treasury issuance could be limited.