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Bond investors are thinking less about the Fed and more about AI, deficits
Wall Street considers it settled that the Federal Reserve will hold interest rates steady this week. Whether that spells good news for Treasuries is more complicated. After a bruising selloff that took yields up sharply for two months starting in August, the Treasury market has rallied, reflecting concern that financing troubles in a corner of the market for AI infrastructure could slow the artificial intelligence buildout that is a central driver of the US economy. Yields have come down from the highs they hit early in October.[....]