Treasury Yields Would Jump on a Democratic Sweep, Goldman Says
- Strategists say 10-year rate could rise 30 to 40 basis points
- Higher yields would reflect expectation of increased spending
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Treasury yields would be jolted higher by Democrats winning the U.S. presidency and control of both houses of Congress, say Goldman Sachs Group Inc. strategists Praveen Korapaty and Avisha Thakkar.
In a note published Wednesday, they said the benchmark 10-year note’s yield could rise 30 to 40 basis points over the month following the Nov. 3 election. The adjustment would reflect the possibility of substantially higher federal spending, they said.