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Treasury Market's Big Short Bet Foiled by Fed Policy Statement

  • FOMC highlights that period of weak inflation continues
  • Dollar bears rewarded as greenback tumbles to 14-month low
US Treasury building
Photographer: John Greim/LightRocket via Getty Images
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The big short in the $14 trillion Treasuries market was short-circuited by the Federal Reserve.

The two-year note yield fell by 3 basis points and five-year yields tumbled by 6 basis points Wednesday after the Federal Open Market Committee left rates unchanged and altered some language in its statement related to inflation.