As we outlined a couple of weeks ago, the bond market was projecting that the Fed would institute a quarter point (25 basis point) interest rate hike later this month. And in fact, Federal Reserve Chair Jerome Powell has just informed congress that he intends “to propose and support a 25 basis point rate increase” on March 16.
At the same time, an analysis of the futures market indicates that the majority of bond traders are now expecting at least five quarter point increases by the end of the year, if not six. We’ll keep you posted and plugged-in.