Bond Traders Blind on Fed as Yields Climb With Oil
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- Bond traders are "flying blind" on the Fed's policy direction and see risk that Treasury yields could spiral higher, per Bloomberg's coverage
- Treasury yields rose alongside oil prices as Fed officials said additional rate hikes are needed, while one bond-market veteran argues Warsh's rate pause tightened conditions more than subsequent increases, per CNBC and MarketWatch
Why it matters: Bond traders face heightened uncertainty about the Fed's next move at a moment when yields are already climbing with oil and officials are publicly signaling more hikes. A contrarian market argument — that a Fed pause tightened conditions more than subsequent hikes — adds a wrinkle to what otherwise reads as a consensus bet on higher rates.
