Treasury Bonds Rally as Tech Stocks Plunge 5.5%

U.S. Treasury bonds experienced a flight-to-safety rally on Thursday, November 6, 2026, as investors shifted capital away from a sharp selloff in technology stocks. The Nasdaq Composite Index fell 5.5% amid investor concerns that a Democratic sweep of federal and state power might curtail the build-out of artificial intelligence.

This market volatility pushed Treasury yields to their lowest levels in nearly two months. Two-year notes dropped below 4.5%, while ten-year yields fell approximately half a percentage point from their recent peaks. Treasurys outperformed high-grade corporate bonds, serving as a diversification tool against AI-sector volatility.

The shift also altered interest rate expectations. In futures markets, the implied probability of a December rate hike by the Federal Reserve fell from over 80% to nearly 70%. Despite the rally, investors continue to monitor risks related to government spending and geopolitical tensions involving Iran.