Fed Is Pricing the Next Hike (or Cycle)

The market spent years waiting for the next cut. Now it is quietly rebuilding the hiking cycle.

For most of the past few years, the rates trade was built around one question:

When will the Fed cut?

Now the question is complete opposite:

The Federal Reserve has about 90% changes to have a rate hike.

But the market is pricing the rate hike already.

Let us look at all the data:

The 2-year Treasury yield has pushed toward 4.5% and the 10-year is at 5% and …