The short end of the Treasury market is carrying the weight of the investment world on its shoulders this week as renewed expectations for tighter monetary policy and new supply confront investors.

Short-dated Treasuries took the brunt of last week's sell-off as accounts moved money to other parts of the yield curve ahead of what many see as an imminent Federal Reserve rate increase. By contrast, longer-dated governments outperformed the shorter maturities because investors believe that the long bond has the most to gain from tighter credit conditions.

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