Yesterday was quite interesting in terms of the Federal Reserve (Fed) talk and the market reaction to the Fed talk. A few Fed speakers including Neel Kashkari and Michelle Bowman sent a cautious message to the market that the Fed’s battle against inflation is not won yet and tightening could continue. But in vain, the market reaction to the latest comments from the Fed speakers was a thick and determined ‘whatever’. The US 10-year yield fell below its 50-DMA, the 2-year yield steadied below the 5% mark, and the gap between the two is widening again as the dovish Fed expectations swamp the marketplace following the soft US jobs data released last week in the US and the Fed’s decision to pause for another month. The Fed President Powell is due to speak this week and will certainly say the same thing than his dear colleagues : that the Fed’s fight against inflation is not done yet and that they will watch the economic data to decide what’s the next step – which could be another pause, or a hike – but investors have made their mind and trade confidently on the expectation that the Fed is done hiking.