After the longest rally in almost a year, the Treasury market is ill-positioned for any surprises from the Federal Reserve next week. Bond investors, who have been abandoning short bets, are anticipating that officials will reaffirm that their ultra-loose policy remains appropriate, and that it’s too soon to start even contemplating tapering the central bank’s purchases of Treasury and mortgage-backed securities. Any hint that such discussions are in the works could provide a rude awakening after the 10-year yield touched the lowest level since March this week. The strength mystified traders; one, Mischler Financial ... (full story)