RBA and Fed March to Same Beat as Rates Rise Again

The US Federal Reserve has raised interest rates, joining the Reserve Bank of Australia in lifting the cash rate. According to the bond market, the Fed and RBA are marching in lockstep on rates. However, traders are unsure which economy will break under the pressure first.

The bond market suggests that both central banks are still raising rates, with no indication of a decrease in sight. This has been accepted by the market, but some traders remain uncertain about the consequences.