Dollar slides after Democratic sweep as Treasury refunding looms

The dollar fell 0.5% and Treasury yields dropped after Democrats swept the midterm elections, taking both the House and Senate. The DXY index traded at 101.317 after touching a one-month low of 101.245, and the 10-year Treasury yield fell about 3 basis points to 4.919%. The dollar dropped 0.5% to 0.8159 francs after an eight-week low of 0.8124 in Asian trade. ING's Chris Turner said the dollar could fall further against the franc if the Treasury's quarterly refunding plans at 1230 GMT upset the bond market and lift safe-haven assets; the Treasury may keep trimming long-end supply, and the franc is also supported by strong Swiss inflation data that raise questions over whether the SNB can avoid raising rates in 2027. XM's Charalampos Pissouros said the sweep could reduce the prospect of further Fed rate rises, weakening the dollar and lowering yields, since tax cuts and extra fiscal stimu