Democrats set to win both seats and flip the senate

Democrats are set to pull a shocking win in Goergia senate run off elections. Both seats are up for graps and Democrats need to flip both in order to win majority in senate, which was seen as hard as Georgia is a Red state, however they already win one race and second is too close to call, however Democratic candidate has edge on incumbant Republican senator. This will mean that Democrats will have 50 seats in 100 seat senate, but in case of tie, Vice President will have extra vote, so Democrats will have majority. One of the reasons for this upset could be childish behavior of current president Donald Trump which helped Democrats to mobilize their voters, but what it means for markets? In awake of election results 10 years tresury yields hit 1% for the first time since March, as for stocks it could mean short rally, before big sell off as Democrats in both houses and White House means, more government spending and bigger Covid relief package, but little bit down the road also higher taxes, both corporate and individual, so investors will look to take profits before new taxes hit. (Goldfarb, Wall Street Journal)

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