Bond market doubts gridlock will ease deficit woes this time
Amidst the backdrop of upcoming midterm elections, bond investors are voicing skepticism about the effects on fiscal policy. Polls indicate that Democrats could seize control of one Congress chamber but might lack a veto-proof majority. Historical data shows that a divided Congress generally reduces Treasury yields, yet anxiety persists this time around.
Bond investors are growing skeptical that the potential return of gridlock on Capitol Hill will ease their worries about the US fiscal trajectory the way it has for decades.Polls suggest that political outcome is likely once again from US midterm elections on Nov. 3.US MarketsPowered ByAs on 28 Oct 2026, 01:30 AM ISTS&P 500 Top GainersPentair62.29(12.80%)Dell Technologies501.96(7.47%)Super Micro Computer35.09(7.34%)Western Digital380.88(6.95%)Gainers»S&P 500 Top LosersXylem92.86(-14.21%)Boeing168.18(-10.69%)Valero Energy387.34(-9.24%)Coterra Energy32.56(-8.62%)Losers»Democrats are projected to wrest control of at least one chamber of Congress from the Republican Party, while falling short of gaining enough seats to override President Donald Trump's veto power.Read more: Global Market Today: Asian stocks advance on resurgent AI optimismSince the mid-1990s, a split Congress or government has often been a bullish recipe for Treasuries.
