Investors are favoring long-term U.S. Treasuries, driving long-term yields down faster than short-term rates, according to BMO. The market widely expects the Federal Reserve to keep interest rates unchanged in October, followed by a 25 basis point hike in December. Recent comments from the Federal Reserve suggest a gradual tightening path, reducing market expectations for an October rate hike. Wednesday's CPI report will be the next major catalyst for the bond market.