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Tug-of-War

Buyers and sellers are in a tug-of-war in the bond market, where yields have been declining. Are buyers sidestepping the budget deficit and other factors?

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Treasury Yields

The U.S. 10-Year Treasury yield has been declining amid the low risk of inflation heading higher. But do investors need to consider that the budget deficit is about $1 trillion a year, and the U.S. Treasury is issuing large amounts of short-term bills and will possibly issue long-term notes and bonds, too? Hedge your portfolio with futures and options.

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