The yield on the US 10-year Treasury note fell to 4.93% on Wednesday after Democrats secured control of both chambers of Congress and President Trump conceded the election, developments that eased political uncertainty and reduced perceived risks. Although the Democratic victory increases the likelihood of stricter regulatory oversight—particularly in the AI sector—it is also expected to narrow the scope for additional tax cuts and government spending. The heightened potential for political gridlock could further limit Trump’s policy agenda, including his stance on tariffs and Iran.
Separately, the US Treasury announced that it expects to keep nominal coupon and floating‑rate note auction sizes unchanged for the next several quarters. As part of a structural adjustment, the Treasury will move the seven‑year note from a monthly issuance schedule to a quarterly new‑issue format with two reopenings, aligning its structure with that of the 10‑year note.