Treasury Yields Fall, Dollar Has Its Worst Day Since September, and Gold Jumps 3% After Democrats Win Congress

The U.S. Treasury Department building in Washington (file photo). Photo: MeanieHyaena / Wikimedia Commons (CC BY 4.0).

U.S. government bonds rallied and the dollar fell the most since September on Wednesday as investors priced in divided government after Democrats won both chambers of Congress, Bloomberg reported via Swissinfo. The 10-year Treasury yield slipped about 5 basis points to roughly 4.92%.

Bonds

Yields fall when bond prices rise. Besides the 10-year Treasury, Germany’s 10-year yield fell 2 basis points to 3.31% and Britain’s fell 8 basis points to 5.18%, according to Bloomberg. The Treasury Department kept its auction sizes steady for the coming weeks, the report said.

One reason investors cited: a split government makes another large round of federal spending less likely. “Political gridlock should reduce the likelihood of another major fiscal expansion,” said Florian Ielpo of Lombard Odier, according to Bloomberg.

The dollar

The Bloomberg Dollar Spot Index fell 0.5% and the dollar weakened against all major currencies. The euro rose 0.7% to $1.1266, and the yen strengthened 0.2% to 158.33 per dollar.

Gold, bitcoin and oil

• Gold: up 2.9% to $4,042.84 an ounce
• Bitcoin: up 0.6% to $78,309, after falling as much as 2.8% earlier
• Oil: West Texas Intermediate crude fell 2.4% to $93.77 a barrel; see our oil price report

Prices are as reported by Bloomberg on Wednesday morning, Nov. 4, and move throughout the day.

What to watch

Democrats take control of Congress on Jan. 3, 2027. House Democrats have said they will push to roll back tariffs, as our report on the new majority explains. Our overnight stock futures report covers the equity side.

This article is for information only and is not investment advice.

Sources

• Bloomberg via Swissinfo: Stocks and bonds rise, dollar slides after U.S. vote