The market doesn't have many legs to help it up at the moment. Another 25 basis point increase in March is a done deal.
There's a good chance the Fed will raise tomorrow and change their language to indicate rates are on hold until we get clearer signs from the economic data. We could get a little rally in Treasuries.
With most economic data pointing to continued strength it's likely, and would be prudent, for the ECB to raise rates in March. There's not a huge amount of support for the market.
My favorite market at the moment is Treasuries. The Fed will probably halt at 4.5 percent for six months or as much as a year.
The ECB will probably take rates to 3.25 percent by the end of the year. We don't particularly like the European markets.
