From Citi:
More than 4 months have passed since lift-off and the first rate hike was largely transmitted to most money market rates (with T-bills rates being the occasional exception). But now, the prospect of another hike this year seems to be diminishing with the steady stream of underwhelming economic data, though Citi Economists believe that one more hike is likely this year.
While we await the next hike (whenever that may be), we search for factors which might influence yields higher in the short term markets. But, after examining the technicals in the G10 fixed income sector, this search seems like a fool’s errand.