Fed’s Higher-for-Longer Mantra Has Doubters in Bond Market

(Bloomberg) — Amid signs the bond market has bought into the Federal Reserve keeping interest rates higher for longer, a cohort of investors is placing bets on the economy hitting a wall — and a sharp policy reversal in short order.

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Treasury yields have settled into tight ranges this month near the highest levels in more than a decade as data show a resilient economy and inflation still well above the Fed’s 2% target. But with yields anticipating a peak in the…