INVESTORS PILE INTO LONG-TERM U.S. TREASURIES AHEAD OF CPI AND FED DECISION

Investors are favoring longer-term Treasuries, pushing long-term yields lower faster than short-term rates, according to BMO. Markets increasingly expect the Fed to hold rates steady in October, followed by a 25-basis-point hike in December. Recent Fed commentary suggests a gradual tightening path, reducing expectations of an October rate increase. Wednesday's CPI report is the next major catalyst for bond markets.

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