(Bloomberg) -- To make money betting on the Federal Reserve this week, investors would have done well following traders of the dollar, not Treasuries.

The greenback slumped 1.3% in the month through Tuesday, even as yields on two-year Treasuries climbed 0.25 pentage point as bond traders braced for a hawkish Fed. The dollar's descent proved to be more predictive, at least this time, as central bank policy makers shaved 50 basis points from their 2016 rate outlook, sending both the U.S. currency and Treasury yields tumbling Wednesday.

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