CIFC Asset Management: Bond Market Has Been Playing Some Policy Role for the Fed

According to Jin10, CIFC Asset Management Managing Director Natalia Loyevesky said in a report that the bond market has, to some extent, been playing part of the Federal Reserve's policy role. She said the U.S. two-year Treasury yield has been significantly above the federal funds rate for some time, which she described as a reflection of the Fed's monetary policy, and added that monetary policy expectations are converging, with the Fed and the market currently pricing in about a 60% chance of a September rate hike.