The gyrations in markets continued yesterday, stirred up by further hawkish comments from the US Federal Reserve Chair, Jerome Powell. Powell endorsed a 50bp hike at the forthcoming May meeting, and appeared to sanction a further 50bp in June. Fed funds futures for December 2022 now imply an effective Fed funds rate of 2.63%. This end-2022 implied yield has been moving steadily higher in recent months. 2-year US Treasury yields pushed up a further 10.7bp on the comments, reaching 2.682% - but they got as high as 2.72% at one point. 10Y Treasury yields also rose 7.7bp to 2.91%. Higher at a faster rate is a story that ... (full story)