US Treasuries rose for a second straight session after Democrats' midterm wins
raised the likelihood that the Trump administration's tax and spending agenda
will be constrained. Yields across the curve fell at least 3bps; the 10-year
yield dropped to 4.84%, its lowest since Sep. 10. The dollar index slipped 0.2%
after recording its biggest one-day decline in two months in the prior session.
Allspring Global Investments' chief fixed income strategist George Bori said
markets welcomed an orderly power transition and a potentially milder policy
agenda, which could narrow next year's fiscal deficit and is positive for bond
investors. Market participants expect Treasury issuance could be limited if the
administration faces greater difficulty advancing spending plans.
