- Rates Further To Climb
- Dollar Strength
The Fed told markets what they didn’t want to hear. Rates would need to be higher than previously thought, and with that, rates across the curve and the are moving higher. Both rates and the dollar may have much further to climb before all is said and done.
This could especially be the case if overnight rates are heading above 5%, which is what the Fed Funds Futures are currently suggesting, and that means the rate will probably head towards 5%, and the entire curve will be taken higher with it.