Treasury yields climb after expected Democratic Senate victory


The 10-year US Treasury yield continued to climb above the 1% mark on Thursday morning, after a predicted victory for Democrats with two Senate seats in the second round of elections in Georgia.

The yield on the benchmark 10-year T-bill rose to 1.063% at 3:40 a.m. ET, while the yield on the 30-year T-bill jumped to 1.847%. Yields move inversely with prices.

The Treasury reports extended gains from the previous session, as Congress confirmed Joe Biden’s election as president on Thursday morning.

It comes a day after dramatic scenes of rioters supporting President Donald Trump who stormed the Capitol building on Wednesday.

This was after Trump, at a rally earlier today outside the White House, encouraged thousands of his supporters to march to Capitol Hill to protest Joe Biden’s confirmation as the next president. The vote count has finally resumed.

Prior to the Capitol invasion, NBC News screened Democrat Jon Ossoff defeating Republican David Perdue in one of the Georgia Senate ballots.

This followed Democrat Raphael Warnock’s projected defeat of Republican Senator Kelly Loeffler for the other Georgia Senate seat.

These projected victories give Democrats a slim majority in the Senate, with a 50-50 seat split and Vice President-elect Kamala Harris as the deciding vote. This means Democrats will have unified control of Congress and the White House when Biden takes office.

Meanwhile, minutes from the latest US Federal Reserve meeting, released on Wednesday, showed the central bank would give the public plenty of notice before cutting its bond buying program.

On Thursday, November’s trade balance data, showing the difference between the value of U.S. exports and imports, is expected to be released at 8:30 a.m. ET. Jobless claims are also due at this time.

December ISM non-manufacturing figures are due for release at 10 a.m.ET.

Patrick Harker, chairman of the Federal Reserve Bank of Philadelphia, will deliver a speech at 9 a.m. ET. St. Louis Fed President James Bullard is scheduled to speak at 12 p.m., followed by Chicago Fed President Charles Evans at 1 p.m. ET.

The auctions will take place Thursday for $ 30 billion in 4-week bills and $ 35 billion in 8-week bills.

CNBC’s Amanda Macias and Dan Mangan contributed to this report.

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