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The Short Answer

Why Are Bonds Defying Expectations?

The Fed raised rates last month, then bond prices rose. What gives?

Question: I'm confused. I thought bond prices were supposed to fall after the Fed raises rates. Why are they gaining? 

Answer: What is going on in the bond market right now is probably a confluence of several factors. First things first: On March 15, in a move that was widely anticipated, the Federal Reserve Open Market Committee raised its target interest rate a quarter point, to a range of 75-100 basis points.