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Worst Bond-Market Rut in 52 Years Shows Few Signs of Breakout

  • Treasuries confined to 62 bps range in 2017, least since 1965
  • Strategists see limited opportunity for volatility by year-end
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How Yields May Defy Wall Street Logic

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The world’s most important bond market is stuck in its worst rut in more than half a century.

Ten-year U.S. Treasury yields have been locked between 2.01 percent and 2.63 percent in 2017 -- a measly 62 basis points. That’s the tightest trading range since 1965, when William McChesney Martin ran the Federal Reserve, Lyndon B. Johnson was president and Frank Herbert’s sci-fi classic Dune hit shelves. And it’s less than half the annual average span of 175 basis points, according to data compiled by Bloomberg.