Due to the possibility of a major victory for the Democratic Party in the mid-term elections in the United States, investors sought to hedge their risks by selling stock index futures, leading to a decline in the yield of U.S. Treasury bonds.

The yield on the benchmark 10-year U.S. Treasury note fell by nearly 5 basis points to 4.902%. The yield on the 30-year Treasury note declined by 5.29%, and the yield on the 2-year Treasury note dropped by 6 basis points to 4.55%.

1 basis point is equal to 0.01%, which is one percent of 1%. The yield rate moves in the opposite direction to the price trend.

According to the predictions of CNBC Election Desk, the Democratic Party is expected to win the House of Representatives. The outcome of the Senate is still uncertain, but the Democrats have already secured a seat in North Carolina, and former Governor Roy Cooper is predicted to win there as well.

As election results were gradually announced, stock index futures tumbled significantly. Contracts related to the S&P 500 index fell by 1.1%, while NASDAQ 100 index futures dropped by 2%. Stocks related to artificial intelligence, which led this round of bull market, led the decline after the market opened. There are concerns that Democrats may slow down the construction of data centers.