Bond market bounces as investors flee to safety amid concerns of a fiscal gridlock | Fortune

Treasury yields fell and bond prices rose on Wednesday as investors moved into safe-haven assets ahead of U.S. midterm elections that could produce a divided government and fiscal gridlock in Washington. The flight to safety came as markets weighed the prospect that a split Congress would constrain spending and tax legislation, a scenario that typically supports government debt. Investors are watching the election results and the shape of the yield curve for signals on how fiscal uncertainty will feed into borrowing costs and broader market positioning.