By Geoffrey Smith
Investing.com -- Democratic Party candidate Raphael Warnock is set to win the runoff election for one of the two runoff elections for Georgia's seats in the U.S. Senate, CBS News and NBC reported on Wednesday.
The other race, between Democrat Jon Ossoff and Republican David Perdue, also appears to be heading for a Democrat victory, according to the networks and election prediction services. According to Decision Desk, with over 99% of votes counted, Ossoff held a lead of just under 13,000 votes with over 99% of votes counted, and many of the remaining ones due from counties that voted Democrat in the November elections.
The yield on the U.S. 10-Year Treasury bond hit 1% for the first time since last March on the news, as the market moved to price in a more expansive fiscal policy under a U.S. government that could end up completely controlled by the Democrats if both seats are won by their candidates. By 3:10 AM ET (0810 GMT), it was trading at 1.01%.
U.S. stock futures were also mostly lower on the results, amid concerns that a Democratic sweep could encourage people to lock in profits on equities before a possible increase in capital gains tax. Nasdaq futures were down 1.7%, while S&P 500 Futures were down 0.5% and Dow Jones Futures were effectively flat.