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U.S. Treasury futures fell Wednesday amid expectations of tighter monetary policy after October inflation came in above forecasts and employment data proved strong, while the 10-year yield remained above 5.01%. Markets priced in the possibility of a 25-basis-point rate hike at the December 9 meeting, while the odds of a 50-basis-point increase rose to around 15%. Markets also expected three consecutive hikes by the middle of next year. The market is preparing for a $25 billion auction of 30-year bonds, with the coupon expected to be 5.25%—the highest for a new issue since 2001.
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