‘Big War’ in Bonds Escalates as Treasury Rift Puts Fed in Play
- Vaccine hopes fail to jolt yields as next Fed meeting looms
- Expectation for Fed action ‘is keeping bonds from selling off’
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The tide in the $20 trillion Treasury market appears to be turning in favor of the bulls for now, with expectations growing that the Federal Reserve will boost purchases of longer-maturity debt as soon as next month.
U.S. government debt just logged its best week since August after the Treasury demanded the Fed return unused funds from emergency lending programs, a request the central bank said late Friday it would comply with. The development bolstered Wall Street predictions that the Fed will unveil more monetary action when it meets in mid-December.