The benchmark 10-year Treasury yield fell 6 basis points to 4.89% as oil settled down more than 8% after Democrats won control of both chambers of Congress. Investors also assessed the prospect of larger short- and intermediate-dated Treasury debt sales.
Treasuries gained during a choppy session after oil prices plunged and Democrats took control of the Senate and House, raising the prospect of gridlock between Congress and the White House. The 10-year yield fell 6 basis points to 4.89%, the 30-year yield dropped 4.5 basis points to 5.279%, and the two-year yield declined 3.5 basis points to 4.579%.
Oil settled down more than 8% as investors bet the change in power could hasten an end to the US-Israeli war on Iran. Some investors said congressional gridlock could limit near-term spending, while weaker oil prices and moderation in AI-related growth could ease inflationary pressures.
The Treasury altered its language on future auction sizes, a shift analysts expect could lead to larger sales of short- and intermediate-dated debt and possible cuts to longer-dated auctions. October services-sector growth slowed marginally, while the September trade deficit narrowed 0.7% to $105.0 billion.
