US Treasury yields fall after midterms: 10-year at 4.90% on November 4

Long-term yields fell, and they are well below their mid-October highs

The Treasury's official daily par yields show what the government pays to borrow at each maturity. On November 4, yields fell by similar amounts across the curve. The fall came after the Democrats swept the midterm elections. On the same day, the Treasury kept the sizes of its coupon (note and bond) auctions unchanged.

• 10-year: 4.90%, down 5 basis points (bp, hundredths of a percentage point) from 4.95%
• 20-year: 5.30%
• 30-year: 5.28%
• 5-year: 4.69%

Over the past three weeks the 10-year has come down from 5.15% on October 19. Over the same period the 30-year has come down from 5.48%.

Short-term yields barely moved

• The 2-year yield fell 3bp to 4.58%. That close was still above its 4.56% close on October 30.
• The 3-month yield held at 4.21% for a third straight day.
• The 1-month yield slipped to 4.01%.

This fits a Federal Reserve that is holding rates after its September hike. The gap between the 2-year and 10-year yields is about 32bp. The gap between the 3-month and 10-year yields is about 69bp. Both gaps are a few basis points narrower than a week ago.

Federal debt rose to $40.547 trillion on November 3

Total public debt outstanding is everything the federal government owes. It rose about $45bn (billion dollars) to $40.547tn (trillion dollars) on November 3. Debt held by the public was $32.765tn. Intragovernmental holdings, which is debt that government trust funds hold, were $7.782tn. Intragovernmental holdings fell about $95bn on October 30, in line with routine month-end trust-fund activity.