U.S. government debt prices rose on Wednesday as midterm election results came in line with expectations, seeing the Democrats taking control of the House of Representatives and splitting Congress.
As of 5:10 a.m. ET, the yield on the benchmark 10-year Treasury note fell to around 3.182 percent, while the yield on the 30-year Treasury bond dropped to around 3.389 percent. Bond yields move inversely to prices.
Meanwhile, the yield on the two-year Treasury pared gains seen in the previous session slightly, falling to around 2.92 percent. On Tuesday, the two-year yield hit its highest level since 2008.
Democrats were projected to regain control of the House for the first time since 2010, giving the party a chance to keep the Trump administration in line. The Republicans maintained a majority in the Senate, assuaging concerns of a so-called blue wave clamping down on the president's economic policies.
The U.S. Capitol building is seen reflected in a puddle at sunrise on the day of the U.S. midterm election as voters go to the polls across the country to elect 33 U.S. senators and all 435 members of the U.S. House of Representatives in Washington, U.S., November 6, 2018.
On Wednesday, the Federal Reserve will gather for a two-day meeting that investors are likely to watch closely. Concerns around the pace of interest rate hikes led to a roller-coaster ride for global markets last month. Markets have been pricing in a higher probability that the Fed raises rates again in December, with further tightening seen through 2019.
On the data front, the Mortgage Bankers' Association mortgage application numbers will be released at 7 a.m. ET, while consumer credit figures are expected at 3 p.m. ET.
And the U.S. Treasury is set to auction $19 billion in 30-year Treasury bonds on Wednesday at 1 p.m. ET.
