The prospect for a rate hike is resonating in the Treasury market. Is this another head fake? Or is the Federal Reserve truly ready to embrace another round of policy tightening? No one knows for sure at this point, including the Fed’s voting members. Much depends on how the economic reports fare between now and the December 13-14 FOMC meeting, when the central bank is expected to raise rates, based on Fed funds futures. No change is expected at the Nov. 1-2 meeting, however.
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