Democratic Sweep Could Curb Treasury Selloff, But Not Reverse It -- Market Talk

1410 ET - A Democratic sweep in the midterm elections could curb the selloff in U.S. Treasuries but probably wouldn't fully reverse the rise in yields, Ebury market analyst Diego Barnuevo says in a note. The Iran war has added an inflationary risk premium across the yield curve. Meanwhile, inflation expectations remain elevated and corporate bond issuance to fund AI investment is adding to supply. A Democratic sweep would be neutral to mildly positive for the fiscal outlook, Barnuevo adds. "Congress could restrain Trump's expansionary agenda and, with it, the deficit." (jessica.coacci@wsj.com)

(END) Dow Jones Newswires

November 02, 2026 14:10 ET (19:10 GMT)