If that’s not enough, the market now sees a 70% probability of the Fed raising rates by 50 basis points later this month, a reacceleration of tightening after a brief step down 25 bps in February. The yield on the two-year Treasury note, which is sensitive to interest rate expectations, has crossed above 5% for the first time since 2007 and could rise further toward 5.655, considering the terminal rate pricing.
