A 50-basis point (bps) interest rate hike is warranted at the Fed’s March meeting, Anna Wong, Chief US Economist for Bloomberg Economics said on Wednesday.

“Our in-house model of a Fed reaction function -- the Bloomberg Economics rule ("BE rule") -- suggests that a 50 basis-point rate hike at the March meeting is warranted, followed by another five 25 basis-point rate hikes the rest of the year,” she explained.

Amid increased speculation the Fed will deliver more than a 25-bps rate hike in March, the US Treasury yields skyrocketed on Tuesday amid a meltdown in the government bond yields.

The benchmark 10-year yields rose to the highest level since January 2020 at 1.89% in early Asian dealings, currently trading at 1.882%, still up 0.77% on the day.

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