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Back in April, I noted that the rate on 10-year Treasury Note was breaking out. Since then, it has gone about 15% higher taking mortgage rates with it.

Today, Doug Kass writes about this key to the economy:

I believe that the market is pricing in too high a probability of an interest rate hike. The credit markets have already done the Fed’s heavy lifting, as seen by the rise in the yield on the 10-year U.S. note of about 75 basis points over the last several months.

The Fed doesn’t always have to walk the talk.

Kass: How to Hedge Like the Best
Doug Kass
June 16, 2008