Midterm base case that's priced in rn: Split Congress
Dems flip the House, GOP holds Senate
Trump's agenda gets stonewalled. Tax cuts? Dead. Fiscal expansion? Blocked.
Market implication: Range-bound chop with elevated vol. Long bonds catch a bid. No clear directional trend.
This is what liquidity is pricing. Anything else = repricing event.
Dems flip the House, GOP holds Senate
Trump's agenda gets stonewalled. Tax cuts? Dead. Fiscal expansion? Blocked.
Market implication: Range-bound chop with elevated vol. Long bonds catch a bid. No clear directional trend.
This is what liquidity is pricing. Anything else = repricing event.

