The run of US Treasury rates does not stop, with the ten-year rates continuing to fly, up to 1.877%, to the record since January 2020, up by 10.5 basis points.
30-year Treasury rates jumped up to 7.7 basis points, to 2.192%, while 2-year rates – which more closely reflect traders’ expectations of short-term rates – jumped to 1.05% , exceeding the 1% threshold for the first time in two years.
Anna Wong, chief economist at Bloomberg Economics, believes that, under the BE rule (Bloomberg Economics rule), at this point the Federal Reserve could raise fed funds rates by 50 basis points in March, and then proceed with another five monetary squeezes, each of 25 basis points, until the end of 2022.
Of note is what Jamie Dimon, CEO and president of JP Morgan, said last Friday, who feared up to seven rate hikes on fed funds.
The CEO of JP Morgan did not give a precise timing, nor did he specify the time frame in which, in his opinion, the Fed of Jerome Powell will, in his opinion, raise rates seven times.
For his part, hedge fund manager Bill Ackman, in some posts on Twitter, wrote that the Fed should resort to the ‘shock and awe’ strategy, that is, it should “shock and terrorize” the financial markets, in order to “restore its credibility “, with a 50 basis point rate hike already in March.