SMBC: US Midterm Elections Have Limited Impact on Treasuries; a Democratic Sweep Could Push Rates Higher
29.10.2026 04:30:03
Bollcoin, October 28: Sumitomo Mitsui Banking Corporation (SMBC) says the different outcomes of the November 3 US midterm elections will have limited impact on interest rate markets, but a Democratic sweep of both chambers could push Treasury yields slightly higher via expanded healthcare spending. It estimates that fully implementing Democratic healthcare policies could add $1.5 trillion in spending over the next 10 years, while restoring ACA subsidies would cost about $80 billion over three years and $350 billion over ten years. SMBC also expects the US Treasury is unlikely to hit the debt ceiling before autumn 2027, with related negotiations possibly delayed to early 2028.