Fed: Now is the time to start getting serious on rates - Rabobank

Michael Every, Head of FMR at Rabobank, suggests that the Fed are apparently deciding that after an incredibly-long period of all-talk and very, very little action, now is the time to start getting serious on rates.

Key Quotes

“Further hawkish Fedspeak from Williams and Bullard, including such choice phrases as giving “serious consideration” to a March hike, have seen odds of that eventuality soar to 70%, an incredible shift in just a few days. Short-end US Treasury yields have soared in response – 2s leaped  7bp to 1.26% yesterday and were at 1.29% in Asia this morning, while 10s rose just 3bp and a further 2bp today to 2.41%, meaning a bear flattening of the US curve.”