Source: Bloomberg

The market is looking for three 25 bps hikes in the overnight during the next 12 months, and the Fed is unlikely to rattle this expectation. It’s notable that the yield on 5-year inflation-protected Treasuries fell slightly after a very strong employment report last Friday. That’s because the blowout ADP employment report already pushed yields up as high as they needed to go. Treasury market reaction to the Fed tomorrow is likely to be a snooze.