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Bond market playing a risky game over Fed rate rise bets

Investors downplay rate rise chances even as potential for losses for bond holders is greater than at any time

Ms Yellen, who expects to raise rates this year if the economy meets her forecasts, has also warned yields may soar once that happens.

New York

IF the Federal Reserve is really so intent on raising interest rates this year, why is Wall Street chopping its forecasts for bond yields?

For all the hand-wringing over the recent selloff that wiped out about US$1.2 trillion in value from the global bond market, the fixed