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Fed shadow flickers over Treasuries

By Michael Mackenzie in New York

Published: February 12 2009 20:37 | Last updated: February 12 2009 20:37

Traders sometimes differentiate between clients by grading them as either small or big species of fish. Those trading US Treasuries can not rule out having a whale to contend with in the form of the US Federal Reserve.

A growing debate among dealers and investors in the US government bond market concerns whether the Fed will follow through on its recent statements that it could start buying Treasuries in order to keep interest rates low.

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