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Inflation Data to Test Limits of Treasury Rally After Haven Bid

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Inflation Data to Test Limits of Treasury Rally After Haven Bid Bond traders are waiting for a key inflation report on Tuesday for clues on the direction of the Federal Reserve’s policy path and whether the recent Treasury rally has more room to run. Treasury yields across the curve fell to their lowest since September last week after a Democratic sweep in the midterms led to a selloff in technology stocks that sent investors fleeing to safety. As equities showed signs of stabilizing Monday,...

Inflation Data to Test Limits of Treasury Rally After Haven Bid Bond traders are waiting for a key inflation report on Tuesday for clues on the direction of the Federal Reserve’s policy path and whether the recent Treasury rally has more room to run. Treasury yields across the curve fell to their lowest since September last week after a Democratic sweep in the midterms led to a selloff in technology stocks that sent investors fleeing to safety. As equities showed signs of stabilizing Monday, the 10-year yield ticked up to 4.88%, but remained well off levels above 5% reached last month. It was little changed in Asia on Tuesday.
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Originally published by Bloomberg Markets Read original →