Report: The market's bets on the central bank shifted from slightly loose to somewhat tight in just a few weeks.

Mitch Reznick of Federated Hermes stated in a report that the market is currently expecting the Bank of England and the European Central Bank to each raise interest rates up to three times, "which is a remarkable turnaround in just a few weeks." According to the London Stock Exchange Group, the market currently also reflects expectations for the Fed to raise interest rates about half a time this year. The head of the fixed income department stated that "selling at the front end of the curve has led to a sharp bear market flattening," referring to the short-term bond yield rising faster than the long-term bond yield. He mentioned that concerns about inflation and the resulting central bank interest rate actions seem to have overshadowed concerns about the geopolitical risks rising in the background of the US-Iran conflict.