The potential for a December rate hike by the Federal Reserve was ramped up yesterday after comments from Janet Yellen to House Financial Services committee which strengthened the dollar once more. December is apparently a “live” possibility if the economy continues to move with expectations. Subsequent to that meeting, the ISM Non-manufacturing PMI increased sharply to 59.1 which was way ahead of the 56.5 expected. The reaction was that Treasury yields continued to climb (as they have been in the wake of the October FOMC meeting) with the 2 year yield now back above 0.800% and back to levels where it was when the ... (full story)