Treasury Market Converges With Yellen on Gradual Rate Increases
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Treasuries rose as bond traders adopt the Federal Reserve’s guidance that the pace of interest-rate increases starting later this year will be gradual.
Longer-term Treasuries led gains even as Fed Chair Janet Yellen said in congressional testimony that the economy has improved a great deal and she expects “growth to strengthen over the remainder of this year.” Traders are pricing in one rate increase by December, according to data compiled by Bloomberg.