Treasuries Sink at Close

Treasuries fell again as reduced rate-cut hopes drove more profit-taking

Treasuries' corrective move lower continued to evolve as a combination of profit-taking, convexity, and deflation hedge unwinding drove yields higher ahead of next week's Federal Open Markets Committee meeting. On balance, the curve steepened sharply as the back-end also unwound some of the risk of near-term "unconventional" policy measures from the Fed, such as targeting longer maturities in its operations.

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