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US/German two-year bond yield gap widest in 21 years


LONDON: The gap between short-dated US and German government bond yields held close to its widest in 21 years yesterday, highlighting a divergence in monetary policy outlooks ahead of a widely anticipated rate rise from the US Federal Reserve.

Two-year US Treasury yields hit more than nine-year highs on Tuesday as investors bet the Fed will conclude a two-day meeting later this session by lifting interest rates for the first time this year.

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