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False Dawn in Treasury Yields Seen With Fed Posing Risk

  • Ten-year rates are testing peaks seen after the U.S. election
  • But Fed stands in way of yields clearing 1%, Yardeni says
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A familiar scenario may be about to play out in the world’s biggest debt market, with a major breakout in long-term Treasury yields at risk of faltering after a banner couple of days for bond bears.

Revived talk of potential economic stimulus, growing vaccine hopes and Federal Reserve Chair Jerome Powell’s signal of optimism for the year ahead sent 10-year Treasury yields to a roughly three-week high Wednesday, following one of the biggest daily yield spikes of 2020.