US 10-year Treasury yield falls after Democrats' midterm win, jobs data in focus

US Treasury yields fell across most maturities on Thursday as investors assessed the outcome of the US midterm elections and awaited fresh employment data. The yield on the benchmark 10-year US Treasury note fell by around 3 basis points to 4.865% at 4:11 am ET on Thursday.

US Treasury yields fall after Democrats' midterm win as investors await fresh US jobs data. (AFP)The 30-year Treasury yield also declined by 3 basis points to 5.245%, while the 2-year Treasury yield remained almost unchanged at 4.581%.

A basis point is equal to 0.01 percentage point, or one-hundredth of 1%. Treasury yields and bond prices move in opposite directions. This means bond prices rise when yields fall and decline when yields increase, according to CNBC.

The latest movement came as investors continued to assess the US midterm election results, in which Democrats won control of Congress. The Democratic victory, described as a 'blue wave', has raised questions about the direction of US government policies during the remaining years of President Donald Trump's term.

Investors are assessing how the Democrats' control of Congress could affect Trump's policy plans and the government's decisions on major issues, including foreign policy. Treasury yields had already fallen sharply after the election results.

The 10-year Treasury yield ended Wednesday's trading session 6 basis points lower. Oil prices also fell on Thursday for the fourth consecutive day. Investors expect a lower possibility of further escalation in the Iran war following the midterm election results.

The fall in oil prices is also important for bond markets because higher energy prices have been putting pressure on government bonds around the world this year. Rising oil prices have increased concerns about global inflation because supply disruptions in the Middle East could make energy more expensive.

Higher energy costs can push up prices across the economy. These inflation concerns have also raised fears that central banks could take a more aggressive approach to interest rates to control rising prices. Such a move could put further pressure on government bonds.

Investors are now waiting for the latest US weekly jobless claims data, which is scheduled to be released at 8:30 am ET on Thursday. The report will provide fresh information about the number of people filing for unemployment benefits, according to CNBC.

Investors will watch the employment figures for further signs of the strength of the US labour market. The data could influence expectations about the US economy and the Federal Reserve's future interest rate decisions. Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news.

She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events.

She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard.

Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives.

For her, both journalism and art are ways to understand the world and tell stories that matter.Read More