Bond Traders Brace for 2016 Rate Boost as Yield Curve Flattens

  • Benchmark two-year note yields rise to highest since June
  • Probability of Fed rate increase by December is above 60%

Benchmark two-year Treasury yields reached the highest since June after Federal Reserve Chair Janet Yellen indicated that the case for tightening policy has strengthened and signaled a gradual pace of interest-rate increases.

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