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Investors get short end of the stick with long-term US debt

A crowded trade in longer maturities is causing more downside and very little upside for bond prices

A cyclist taking in the US Federal Reserve building in Washington. Federal Reserve chair Janet Yellen this month laid out arguments for keeping policy accommodative, hinting at letting the economy run hot.

New York

THE hottest craze in fixed income is at risk of overheating.

A headlong rush into higher-yielding, long-term bonds in recent years has created one of the most crowded trades in financial markets. Investors seeking relief from central banks' zero-interest-rate policies have...

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