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We don’t expect US Treasury yields to rise much further

The fact that last night’s US Presidential debate didn’t appear to reduce the chances of a Democratic clean sweep at the upcoming US election, and the optimistic comments on the fiscal negotiations by House Speaker Nancy Pelosi, are probably behind the further increase in the 10-year US Treasury yield over the past two days. But we doubt that the sell-off in US Treasuries has much further to run.

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