“In my opinion, it is too early to think or talk about a pause in rate hikesPowell said at the press conference after the decision. The president of the entity added that the data since the last meeting suggests that the final level of interest rates will be higher than expected.
The changes to the Fed statement had previously been perceived as dovishsaying that the future pace of rate hikes would take into account the accumulated tightening of policy, the lags with which monetary policy affects activity and inflation, and economic and financial developments.
The 10-year Treasury bond yield rises 13.5 basis points to 4.1973%, its highest level since Oct. 25 and on the way to achieve its biggest daily rise since October 5.
The two-year debt yieldmore sensitive to changes in interest rate expectations, rose 14.6 basis points to 4.7159%, its highest since July 2007.
The markets monetary are divided refering to magnitude of the Fed’s next move at your meeting december. According to data from Refinitivea 50 basis point rate hike is fully priced inwith a 53% chance of the Fed opting for a fifth consecutive rise of 75 basis points.
Operators are valuing almost 140 basis points additional hardening, which would bring the top rate to around 5.15% in the middle of next year.
Source: Ambito
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