The USD is the strongest and the GBP is the weakest as traders send stocks lower and yields higher. The day after the BOE raised rates by 50 basis points, the new UK government is announcing stimulus measures that will cut taxes and provide energy subsidies. The GBP is moving sharply lower (down to a low to near 1.1000 at 1.1019), while UK yields soared with the 10 year yield up 29 basis points to 3.786% as investors wonder how the UK government will square the books without much larger borrowing needs.

US yields are also higher after the Fed hiked by an additional 75 basis points on Wednesday and now see end of year rates at 4.4% (so 4.25% to 4.5%). The current target is 3.0% to 3.25%. There are two more meetings in 2022 which makes 75 and 50 basis points the path seen by Fed officials. The good news is that they don’t see much more in 2023. The 2 year yield is at 4.214%. Does it go to target 4.4% area? The 10 year yield moved above 3.8% earlier today. A week ago the yield was at 3.45%.