Will U.S. Government Bonds Rally?

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While the U.S. Federal Reserve’s primary monetary policy tool is the short-term Fed Funds Rate, market forces determine interest rates further along the yield curve. In a June 5, 2025, Barchart article on Moody’s downgrade of the U.S. sovereign credit rating, I concluded: Moody’s reduced the U.S. sovereign credit rating because of debt concerns. Me…

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