Mortgage Rates Hit 4.02%. Two-Year Yield Spikes by Most Since 2009. Ten-Year Yield Goes Over 2%. All Heck Breaks Loose.

by Wolf Richter
Wolf Street

Yields and rate-hike expectations spike. A rate hike now?

The probability of a 50 basis-point hike at the FOMC meeting on March 16 spiked to 90% this afternoon, based on CME 30-Day Fed Fund futures prices, after this morning’s hair-raising inflation data for January, and after St. Louis Fed President Bullard’s talk on Bloomberg. The spike in inflation is now infesting services and has spread deep and wide into the economy. A 50-basis-point hike would bring the Fed’s target range for the federal funds rate to range between .50% and 0.75% (Fed Rate Hike Monitor via Investing.com):

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