Bond market further selling - #bonds

The message was clear from Powell yesterday as he reiterated that there was nothing standing in the way of the FED from hiking by 50 bips at the next meeting. As a result, the 10 year treasury note has slid further to the downside. Currently, the 10 year is trading at 123.20 handle while the yields have touched 2.35%, way overshooting the markets expectation of 2.25%. Meanwhile the 10-2 year spread is only sitting at 17 bips away from inverting. Its looking like the bond market has more selling to come as we have already broken some key levels to the downside. Further selling weakness in the bond market could take us 120.25 area or even 117.60 if income inflationary data remains out of hand and the FED is pressure to raise rates further.