U.S. Midterm Elections Push Treasury Yields Higher: 10-Year at 4.96%, 30-Year at 5.33%

[Financial News] Treasury yields rose across the board on the 3rd (local time), when the U.S. midterm elections were held. With U.S. labor-market data coming in stronger than expected, investors focused on the election results and geopolitical tensions surrounding Iran.
According to CNBC, immediately after trading closed in New York, the yield on the 10-year U.S. Treasury note stood at 4.958%, up 6.4 basis points from the previous session (1 bp = 0.01 percentage point).
The 30-year yield rose 6.2 basis points to 5.331%, while the monetary-policy-sensitive 2-year yield gained 4.2 basis points to 4.625%. Treasury yields and prices move in opposite directions.
As the U.S. midterm elections proceeded, attention focused on how changes in the balance of power in Congress could affect fiscal policy and financial markets.
Economic data also contributed to the rise in yields. According to the U.S. Job Openings and Labor Turnover Survey (JOLTS) for September, released that day, job openings totaled 7.523 million, exceeding the market expectation of 7.125 million compiled by Dow Jones.
With labor demand proving stronger than expected, attention also turned to the Federal Reserve’s (Fed) monetary policy path.
This week, the Institute for Supply Management’s (ISM) Services Purchasing Managers’ Index (PMI) and ADP private employment report will be released on the 4th. October nonfarm payrolls and the unemployment rate are scheduled to be released on the 6th.
Developments in the Middle East were also seen as a key factor. Tensions escalated after U.S. airstrikes on Iran’s Qeshm Island, but international oil prices fell as hopes for a diplomatic resolution subsequently grew.
West Texas Intermediate crude oil (WTI) traded at around $96 a barrel that day, while Brent crude traded at about $103.
Markets believe the direction of U.S. fiscal policy after the midterm elections and employment data will determine the course of Treasury yields going forward.

[email protected] Lee Seok-woo, International Affairs Correspondent Reporter