Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading August 24, 2026 in New York.
Angela Weiss | AFP | Getty Images
Treasury yields fell on Wednesday as investors looked ahead to big Democratic victories in the U.S. midterm elections.
The reference Yield on 10-year Treasury bonds fell 3 basis points to 4.917%. THE Bond yield at 30 years slipped 4 basis points to 5.289%, and the short-term rate Yield of 2-year notes decreased slightly to 4.606%.
One basis point is 0.01%, or 1/100th of 1%, and yields and prices move inversely to each other.
Democrats won majorities in the House and Senate. The party is expected to win at least 250 seats in the House and at least 54 in the Senate. Democrats flipped Republican Senate seats in Iowa, Kansas, North Carolina, Ohio, South Carolina, Maine and Texas. They also won key gubernatorial races in Ohio and Texas.
The Democrats’ resounding victory could put the brakes on the Trump administration’s government spending because it would make it more difficult for the White House to push legislation through Congress.
JPMorgan traders said one of the issues Wall Street will focus on after the midterms is “reducing deficit spending.”
“This can be achieved by asserting power over the budget and likely through a government shutdown,” they said.
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