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Treasury Yields Climb With Rate-Hike Odds on Strong ISM Services
Treasury yields climbed Wednesday — some to the highest levels in a week — as traders priced in higher odds of a Federal Reserve interest-rate increase this year after a gauge of service-sector activity was stronger than anticipated. The market-implied odds of a quarter-point Fed rate increase in November climbed to around 60%, from closer to 50%, after the August ISM services index and related measures of prices and employment rose sharply. The odds of a hike that month peaked at around 75% last week. Short-dated Treasury yields, more sensitive than longer maturities to changes in the Fed’s rate, remained ... (full story)