Bonds: The Deck Has Been Shuffled After the U.S. Election

With the crash in the tech market, bonds are once again in demand, especially “safe” ones such as U.S. and German bonds. In addition, the sharp drop in oil prices is dampening inflation expectations; perhaps fewer interest rate hikes will now be necessary.November 6, 2026. FRANKFURT (Deutsche Börse). The Democrats’ landslide victory in Tuesday’s U.S. midterm elections has bolstered government bond prices and caused yields to fall—both in the U.S. and here in Germany. “Above all, hopes for a resolution to the conflict in the Persian Gulf appear to be a key driver here,” comments Helaba analyst Ralf Umlauf. The price of oil fell sharply, reducing the risk of inflation and, consequently, the likelihood of further interest rate hikes. “With the sell-off in the tech markets, the mantra is ‘get out of risk’—investors are seeking safe havens,” notes Arthur Brunner of ICF Bank. “This benefits not only U.S. government bonds but also German government bonds.”Yields on 10-year German government bonds stood at 3.23 percent on Friday morning, down from 3.34 percent a week ago. This means they have moved even further away from their September highs of over 3.60 percent. The yield on 10-year U.S. Treasuries also fell and currently stands at 4.84 percent, down from 4.93 percent a week ago. “Another Interest Rate Hike Considered a Given”In the United Kingdom, the Bank of England raised key interest rates yesterday, as expected, by another 25 basis points to 4 percent. “For the ECB and the Federal Reserve, another rate hike this year is considered more or less a foregone conclusion,” Brunner notes. The U.S. jobs report due this afternoon is likely to provide further insight into the state of the U.S. economy. Even more important: the U.S. consumer price index for October, which will be released next Tuesday. Arthur Brunner The issue of France’s high national debt is still on the table. “There’s no all-clear yet,” explains Brunner. “The yield spread between 10-year French government bonds and German ones remains at 154 basis points.” Spanish government bonds, such as those maturing in 2032 ( ), are in strong demand.Telekom in High DemandGregor Daniel of Walter Ludwig Wertpapierhandelsbank reports strong demand for corporate bonds, “across the board and across all maturities.” ICF trader Brunner reports “very strong buying” of Deutsche Telekom bonds ( ) following the release of the latest financial results and the announcement of a share buyback program. Daniel also sees demand for Telekom bonds ( ).Small Rebound for Homann, Formycon Under PressureAccording to Daniel, there was a small price rebound in the Homann Holzwerkstoffe bond ( ), which had plummeted last week. The company reported its third-quarter results on Wednesday and confirmed its outlook for 2026: Revenue exceeded the prior-year level, and adjusted EBITDA was clearly positive. “Unfortunately, there’s no statement here as to whether the next coupon payment will be made as scheduled,” notes Daniel. The price stood at 64 percent on Friday morning after hitting a low of 48 percent last week. In August, however, it was still above 100 percent.According to Daniel, however, Formycon ( ) saw its stock price fall. The pharmaceutical company recorded impairment charges for two biosimilars and revised its 2026 forecasts downward. The stock price fell from 96 to 89 percent. According to Brunner, there were significant fluctuations in the stock price of The Platform Group ( ). “The stock price rose following the latest financial results, then profit-taking set in.”Tech Companies: Issuance Boom ContinuesAs for currency-denominated bonds, Brunner observes a significant decline in demand compared to previous weeks. “That’s likely due to the uncertainties following the U.S. election.” At the start of the week, Walter Ludwig trader Daniel reported purchases, including a Brazilian real-denominated bond from the International Finance Corporation ( ) and an Indian rupee-denominated bond from the European Bank for Reconstruction and Development ( ).In addition, new bond issuances worth billions by U.S. tech companies continued: Apple issued new bonds worth $7 billion, as Brunner reports; Oracle, $23 billion; Meta, $11 billion plus 9 billion in euros; and Alphabet, $6 billion. “This has once again heightened doubts about tech companies and their extremely high investments in data centers,” he notes. According to Brunner, however, there were no new bond issuances with denominations suitable for retail investors. By Anna-Maria Borse, November 6, 2026, © Deutsche Börse AG About the Author Anna-Maria Borse is a finance and business editor specializing in financial markets, the stock market, and economic issues.Feedback and questions to live@deutsche-boerse.com

Bonds: The Deck Has Been Shuffled After the U.S. Election

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