Comments by "DiewConklan" (@hRt42kuo7jTtmk14) on "Fed's Bullard: Inflation Is 'Far Too High for Comfort'" video.

  1. Fed hikes aren’t all priced in. If that were true then the CBOE 10-Year Treasury Yield Index would already be at 3.25% and it’s not.
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  2. Maybe the market has priced in hikes up to 2.5% already given that the 2 year treasury is now yielding 2.47% and it was still yielding 0% back in January. But even if 2.5% is already priced in it doesn’t matter to future yields because bond yields will still go higher from here. This is because, if the Fed hikes 0.50% two to three times between now and the end of the summer, then the market will see the Fed as hawkish and will start pricing in another 1% of hikes on top of the already 2.5%. Then bond yields will still climb even higher from where they are now.
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  3. The Fed Put is here to stay. It started with the Big Screwnami of 2008 and was rebooted in March 2020.
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