Rate Hike Fears Hit Treasuries

The market had second thoughts about the Fed's rotation to neutrality Wednesday

Treasuries had second thoughts about the Fed's rotation to neutrality Wednesday, suffering further from well-timed rumors about the Fed pulling the trigger on a half point rate hike as soon as May. The curve flattening trend resumed mildly, with the policy-sensitive front-end revealing its vulnerability to the rumors and policy bias-creep.

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