Markets just flipped the script on December.
We went from debating cuts to pricing in hikes. 84% chance of +25bps, 11% chance of +50bps.
The question isn't "if" anymore. It's "how much."
This is what happens when inflation refuses to cooperate and the data stays hot. Fed's got no choice but to stay tight.
Anyone still holding rate-sensitive names better be watching this closely. Duration risk is back on the table.
We went from debating cuts to pricing in hikes. 84% chance of +25bps, 11% chance of +50bps.
The question isn't "if" anymore. It's "how much."
This is what happens when inflation refuses to cooperate and the data stays hot. Fed's got no choice but to stay tight.
Anyone still holding rate-sensitive names better be watching this closely. Duration risk is back on the table.
