OPER - Rates Spark: Closer To Being Fed Up

• It's clear that the Fed is not for moving away from a super-easy policy setting. This leaves the back end of the curve still quite unprotected from any unexpected inflation.
• The bond market is listening; US yields rose into the FOMC and came out re-testing lower.
• We see this as a temporary stall within a medium-term rise in market rates. We also note ongoing strong demand for fixed income - remarkable in a bear market for bonds.
• Ahead of tomorrow's preliminary eurozone inflation data, we will get preliminary inflation readings from Germany and Spain today, which should point the way for the wider bloc.

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