Divided Government to Curb US Borrowing, But Bond Yields Remain High

After the Democrats won the US midterm elections, a divided government may help limit future Treasury borrowing and prevent new deficit blowouts, analysts say. However, it may not bring down elevated bond yields. The US Treasury Department released its quarterly refunding statement on Wednesday. Market participants described the overall borrowing outlook as largely neutral. Based on its projected financing needs, the Treasury said it expected to keep note and bond auction...