The Fed sent a hawkish message to markets— more rate hikes are coming and a bit faster than expected, triggering an immediate negative reaction in bonds. The Federal Reserve raised interest rates by a quarter point and indicated that rate hikes could be faster and higher than previously forecast, including an anticipated fourth rate hike for 2018. Treasury yields rose, but the yield curve temporarily flattened to its lowest level since September, 2007 after the Fed announcement, signaling fears of future economic weakness or a policy mistake by too aggressive Fed tightening. Simply put, that means short end yields, ... (full story)