WASHINGTON -- Maybe the bond market hasn't lost a wheel after all.

Bonds have rallied in a delayed reaction to the Federal Reserve's third increase in short-term interest rates that lifted the federal funds rate to 3.75%. The yield on the Treasury's 30-year bond slipped back below 7.25% - which is where it was before the Fed tightened - to 7.15% on Tuesday morning.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.