Comments from Fed officials this morning piled onto those concerns.
St. Louis Fed President Bullard (FOMC voter) acknowledged that the fed funds rate is not yet sufficiently restrictive and, citing the Taylor Rule, said a 5-7% fed funds rate may be needed.
Kansas City Fed President George (FOMC voter), meanwhile, said a real slowing in labor markets and a contraction in the economy may be needed to reduce inflation, according to CNBC.
The Treasury market had a noticeable reaction to those remarks. The 10-yr note yield is up 10 basis points to 3.79% and the 2-yr note yield is up 10 basis points to 4.46%.