An avalanche of hawkish Fed speakers appear to have got their way as March rate-hike odds have extended yesterday's move to 82% this morning. As stocks soar after a more presidential Trump, bond yields are also rising, catching up to stocks after diverging for two weeks.
From 24% to 82% in 3 weeks... did the economic data shift that much?
Umm no...
Stocks are soaring... bonds playing catch up for now.
But while bond yields are higher - 30Y above 3.00% - though the move is fading now...
2Y Yields are the highest since 2009. The yield curve has collapsed to its flattest since 2008...
That does not look like a market that is buying what The Fed is selling?!
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