January's Treasury Losses Were Brutal, But It May Be Just The Start
- After expected 2022 hikes, key rate would still spur growth
- ‘The Fed is so far behind that it can’t even see the curve.’
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To many on Wall Street, the painful selloff that’s been racing through the Treasury market this month is only the opening act.
On Wednesday, Federal Reserve Chair Jerome Powell’s hawkish tone added fuel to the rout after he said the bank is poised to start raising interest rates in March, sending two-year Treasury yields surging the most since March 2020. Money markets swiftly started pricing in nearly five Fed hikes this year, up from three expected as recently as December.