With the market assuming the first rate hike from the Fed not on the cards for a year or more, the hawkish analysis by a New York consulting firm suggesting there are two voters ready to hike immediately has gotten the markets in a tizzy. 10-year note yields have zoomed 8 bp in yield and are now at 3.37%. The combination of this news and a failed attempt to overcome the 90.00/10 area is prompting a short-covering rally. We’ve jumped to 90.75 so far.
This area should provide resistance in the near-term. More light resistance is eyed at 90.90 and 91.10.
