Franklin Templeton’s Australian fixed-income head says the initial market
reaction to the US midterms has been a modest shift from equities into bonds and
a rise in risk aversion. He warned that if Democrats win control of Congress
markets may view this as a constraint on President Trump’s growth agenda,
particularly in AI and the resources sector. Traders also increasingly see the
RBA as close to ending its tightening cycle; three‑year Australian government
bond yields are down about 15bps since early this week.
