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Heard on the Street: Market may push Fed further yet

Barring a sudden improvement in the tone of economic data, bond yields are likely to fall further.

Please, sir, may I have some more? The US Federal Reserve bowed to market pressure by agreeing to reinvest the proceeds from maturing securities acquired under its earlier quantitative-easing program, thereby maintaining the size of its balance sheet. But that is unlikely to end the clamour for further policy loosening.

Barring a sudden improvement in the tone of economic data, that means bond yields are likely to fall further.

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