FX.co ★ US 10-Year Yield Falls on Safe-Haven Demand

The US 10-year Treasury yield fell to around 4.9% on Wednesday, nearing an eight-week low, as early midterm election results increased political uncertainty and bolstered demand for safe-haven assets. Investors are assessing the likelihood of Democrats gaining control of both the House of Representatives and the Senate, a scenario that could create political gridlock in Washington and constrain government spending.

A Democratic sweep could also open the door to tighter AI regulation and more stringent corporate oversight, developments that may weigh on the economic growth outlook. At the same time, market participants are watching to see whether President Trump will resume military strikes against Iran after the election, amid ongoing diplomatic tensions.

Investors are also closely monitoring the upcoming US jobs report, due later this week. The data will offer fresh insight into labor market conditions and could shape expectations for future Federal Reserve policy.