Do you see any impact of the Fed hiking rates by 50 bps?

Fed went as per its commitment and hiked rates by 50 bps, the biggest single move on the upside since year 2000. With inflation at 8.5%, Jerome Powell had already made a commitment that Fed would hike rates by 50 bps in May. The CME Fedwatch also indicates that the Fed rates would get closer to 2.7% to 3% by end of 2022.

On the bond unwinding, Fed has committed to roll out in June, albeit with a lower amount of $47.5 billion for 3 months, post which it will be upgraded to $95 billion per month.