The bond market just gave back a chunk of its recent rally. Through last Thursday, Treasury yields had been falling and the curve had been bull-steepening. It was an honest to goodness bond rally dating back to early October.
Then payrolls came in stronger than expected. Consumer prices followed with another upside surprise. And Federal Reserve officials immediately began talking about not only a December rate hike, but potentially a larger one.
The evidence for what's coming is in the curve’s rare shape: unusually steep at the very front and unusually flat farther out.
Video Length: 00:23:03
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