US mid-term elections are about two weeks away. The elections take place in a highly volatile macroeconomic environment. The US economic growth has remained strong, thanks mostly to a massive investment boom in artificial intelligence (AI) and a large fiscal stimulus. But this, along with high energy prices, has also kept retail inflation elevated (the latest print was 3.7% in September). A combination of stubborn inflation, heavy federal borrowing, structural AI-related investments, and resilient economic growth have led long-term yields surging to multi-decade highs
