Treasury Yields Surge With Prospect of Bigger Fed Hikes on Table
- Fed raises rates, while Bullard voted for an even bigger hike
- Market pricing in more than seven standard hikes for 2022
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Treasury yields surged Wednesday, led by rates at the front end of the curve, after the Federal Reserve raised its key borrowing benchmark by a quarter of a percentage point and said ongoing increases would be appropriate as it seeks to battle accelerating inflation.
Swaps linked to Fed policy announcement dates at one stage indicated at least 75 basis points of further rate increases would take place over the coming two meetings, suggesting that one of the anticipated moves from the central bank might be bigger than the standard size of 25 basis points.