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Bond Traders to Yellen: You’re Wrong on Oil’s Impact on Economy

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Janet Yellen has dismissed plunging oil values as a fleeting shock to the economy. Bond traders disagree.

The latest slump in oil has investors dumping their junk-rated energy securities and slashing their predictions for inflation. Energy-related high-yield bonds have tumbled 3.4 percent this month and dollar-denominated notes that are hedged against accelerating prices have declined 2.1 percent.