US Treasuries Rally as Tech Stock Selloff Spurs Safe-Haven Demand

US Treasuries surged as Democrats swept Congress in the midterm elections, triggering a selloff in large technology stocks that fueled demand for safe-haven assets. The U.S. Treasury market rallied on Thursday, with yields across maturities falling by as much as 12 basis points to their lowest levels since early September. Yields began declining after the U.S. stock market opened, with the Nasdaq 100 falling 6.09% and the Philadelphia Semiconductor Index dropping 11.11%. The Treasury market posted its biggest monthly gain in more than two years last month as investors lost confidence in the sustainability of AI infrastructure capital expenditures, shifting from equities to bonds. "The decline in chip stocks further reflects the market's view that capex growth may slow," said Anmol Sinha, fixed income investment director at The Capital Group. "This is triggering a market reaction."