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U.S. 10-Year Bond Yield Falls to 3-Week Low
The yield on the benchmark 10-year U.S. government note fell to a three-week low Wednesday while the yield on the two-year note traded near a five-year high, with their yield gap shrinking to the lowest level in nine months. It is the latest sign the bond market is girding for an interest-rate increase by the Federal Reserve next month. Investors have been shedding short-term debt and migrated cash into long-term bonds since late October when Fed officials sent a stronger signal that they were on track to tighten monetary policy for the first time since 2006. Yields on short-term debt are highly sensitive to expected ... (full story)