Treasury prices rally after cautious Fed speech

NEW YORK, Nov 28 (Reuters) – U.S. Treasury prices rallied on the release of Federal Reserve Chair Jerome Powell’s remarks on Wednesday, which said that while there was “a great deal to like” about U.S. prospects, the bank’s gradual interest-rate hikes are meant to balance risks as it tries to keep the economy on track.

Two-year treasury yields, which reflect traders’ expectations of interest rate hikes dropped 3 basis points, last at 2.80 percent. Longer-dated federal fund futures also ticked higher suggesting diminished expectations for interest-rate hikes after December 2018. (Reporting by Kate Duguid)

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