U.S. Treasury yields are reaching critical levels ahead of the midterm elections, with the 10-year yield climbing above 4.8% this week, its highest since October 2023. Treasury Secretary Scott Bessent has announced buybacks and renewed reliance on short-term borrowing to prevent long-term yields from climbing further. In a Reuters poll, nearly half of registered voters named the cost of living as the most important factor in their vote, with 71% of Americans disapproving of Trump’s handling of the cost of living. Epidemiologist-turned-politician Abdul El-Sayed, the Democratic nominee for U.S. Senate in Michigan, and other candidates are framing the bond rout as a political risk for Trump, warning that rising rates threaten to make an Affordability 2.0 crisis flare up just weeks before the midterms.
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