U.S. 10-Year Treasury Yield Hits 1% for First Time Since March

Yields started climbing as early returns from the Georgia runoff elections tilted toward Democrats

Democratic candidate Raphael Warnock is set to be the first Black American to represent Georgia in the Senate, as the AP declared him the winner of a close runoff election over Republican Sen. Kelly Loeffler. Which party will control the chamber is still to be determined. Photo: Raphael Warnock/YouTube

香蕉视频苹果下载The yield on the benchmark 10-year U.S. Treasury note rose above 1% for the first time since March on Wednesday, reflecting increased bets on additional fiscal stimulus after Georgia’s runoff Senate elections.

香蕉视频苹果下载The yield on the 10-year note settled at 1.041%, according to Tradeweb, up from 0.955% on Tuesday.

Yields, which rise when bond prices fall, started climbing Tuesday evening as early returns from Georgia’s two elections showed promising signs for the Democratic candidates. The Associated Press called one race for Democrat Raphael Warnock at around 2 a.m. ET and the other race for Democrat Jon Ossoff later in the day, after normal trading hours.

香蕉视频苹果下载Wins in both races effectively give Democrats 51 votes in the Senate—when counting the tiebreaking vote of Vice President-elect Kamala Harris—an outcome that many investors think could herald greater spending on pandemic-relief efforts and other Democratic priorities such as infrastructure projects. Democrats will also control the White House and the House of Representatives once President-elect Joe Biden is sworn in on Jan. 20.

香蕉视频苹果下载Increased government spending without corresponding tax increases tends to push up Treasury yields partly because it portends more government borrowing and a larger supply of bonds. Depending on the type of spending, it can also drive yields higher by boosting economic growth and inflation and making it more likely that the Federal Reserve will raise short-term interest rates.

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