CIFC Asset Management managing director Natalia Loyevesky said in a report the
bond market has, to some extent, been performing part of the Federal Reserve's
policy function. She noted the U.S. 2-year Treasury yield has traded noticeably
above the federal funds rate for some time—an expression of Fed policy—and said
Monetary policy expectations are converging, with the Fed and the market pricing
Roughly a 60% chance of a September rate hike.
