Bond dealers project the gap between yields on two-year and 10-year Treasury notes to narrow by the end of 2012 as the Federal Reserve begins raising rates next year, according to an economic forecast released today. The Bond Dealers of America sees a 60 percent chance that the Fed will not begin to increase its federal funds rate target until 2012, the survey of chief economists and market strategists at middle-market bond dealers showed. The group expects gross domestic product to rise 2.9 percent this year and 3.1 percent in 2012. The poll’s median forecast calls for the gap between two- year and 10-year note ... (full story)