Interest rate traders and the Fed have been in a tug of war this hiking cycle, including so far this year. Markets (traders) have consistently underpriced Fed rate moves perhaps believing that inflation would be less persistent or that Fed would cut rates at the first sign of market trouble: the much discussed “Fed put”. Since the recent US data flow continues to generate positive surprises, we appear to be back in a world of rising rate hike expectations. Importantly, the prospect of higher for longer rates is rising.