Yields on U.S. sovereign debt rose during election night as investors digested the preliminary results from the closely contested fight between Donald Trump and Kamala Harris.

What happened: The benchmark 10-year Treasury yield popped 12 basis points to 4.412%, a level not seen since July 2. 

Similarly, the yield on 2-year government bonds lifted 6 basis points to 4.262%, the highest since last week of July. The yields on the 30-year Treasury lifted 15 basis points to 4.606% as of this writing. 

The uptick comes as the market raised expectations of Trump’s White House comeback after the GOP nominee won battleground states of North Carolina and Georgia. 

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The market became wary of each candidate’s fiscal policies as both Trump and Harris have proposed expansive tax and spending measures that would deepen the debt — already projected to reach a historic high in the coming years.

According to the CRFB’s central estimate, Trump would increase the national debt by $7.75 trillion between 2026 and 2035, leading the government to issue more bonds to fund the deficit. 

Aside from Treasury securities, other market indices rose sharply, including stock futures, the dollar, and gold, while oil fell. 

Photo by Steve Heap on Shutterstock

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