The 10-year US Treasury yield continued to rise above 1% on Thursday morning, following an expected victory for the Democrats of two Senate seats in the election in Georgia.
The benchmark’s 10-year government bond yield rose to 1.063% at 3:40 a.m. ET, while the 30-year government bond yield rose to 1.847%. Revenues move inversely with prices.
Treasury is delivering significant gains over the previous session, with Congress confirming Joe Biden’s election as president on Thursday morning.
This comes a day after dramatic scenes of rioters backing President Donald Trump who storm the Capitol on Wednesday.
This was after Trump, at a rally outside the White House earlier today, encouraged thousands of his supporters to march to the Capitol to protest Joe Biden’s confirmation as the next president. The electoral vote count was eventually resumed.
Prior to the Capitol invasion, NBC News had projected Democrat Jon Ossoff to beat Republican David Perdue in one of the Georgian senate seats.
This followed the anticipated defeat of Republican Senator Kelly Loeffler by Democrat Raphael Warnock for the other Senate seat in Georgia.
These expected victories give the Democrats a narrow majority in the Senate, with 50-50 seats split and Vice President-elect Kamala Harris as the casting vote. This means that the Democrats will have joint control of Congress and the White House when Biden takes office.
Meanwhile, minutes of the most recent US Federal Reserve meeting, released Wednesday, showed that the central bank will give the public ample notice before cutting back on its bond buying program.
On Thursday, trade balance data for November, showing the difference between the value of US exports and imports, is expected at 8:30 a.m. ET. At the moment, applications for unemployment are also due.
December non-manufacturing ISM figures will be released at 10 a.m.ET.
Patrick Harker, president of the Federal Reserve Bank of Philadelphia, will deliver a speech at 9 a.m.ET. St. Louis Fed President James Bullard will speak at noon, followed by Chicago Fed President Charles Evans at 1 pm ET.
Auctions will be held 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.