Treasury yields fell on Wednesday after the U.S. midterm elections resulted in the Democrats winning the House of Representatives and the Republicans retaining the Senate.
Bond traders said that the as-expected results are not likely to see major reactions from credit markets, though some said a split Congress could stall plans for further tax cuts or major spending. That, in turn, could be a modest boon for bonds prices, which have come under pressure thanks to historic deficit spending and debt issuance from the Treasury Department.
As of 1:58 p.m. ET, the yield on the benchmark 10-year Treasury note fell to around 3.199 percent, while the yield on the 30-year bond dropped to 3.403 percent. Meanwhile, the yield on the two-year note rose to around 2.944 percent. On Tuesday, the two-year yield hit its highest level since 2008. Bond yields move inversely to prices.