Treasury Bonds Defy Fed With Biggest Rally Since 1970s
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Treasury 30-year bonds are posting their biggest-ever rally to start the year even as Federal Reserve policy makers plan to raise interest rates later this year.
The bond yield dropped 0.25 percentage point during the first three days of 2015 and is approaching its record low. Speculation the collapse in oil prices and the risk of deflation in Europe amid a surge in political turmoil will restrain inflation around the world added to the allure of U.S. debt.