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Bond Markets Are Coming Around to the Idea of a Rate Hike
It’s three for three. A $28 billion sale of seven-year Treasury notes this afternoon wrapped up a strong week of U.S. government debt sales. Sales of two-year and five-year notes in the previous two days also drew solid demand from investors at home and abroad. The results suggest the bond market may have adjusted to the possibility of a rate increase by the Federal Reserve this summer. Bond yields have climbed in the past two weeks as a number of Fed officials signaled that the U.S. economy may be resilient enough for the central bank to raise rates again. The Fed increased its benchmark short-term interest rate ... (full story)