The first was the shift higher of several central banks’ forward rate paths. In the United States, the probability of one 25 basis points (bps) rate hike was barely priced in on October 1st, and just one month on Federal Funds Futures are pricing for the potential of two hikes before 2022 closes out. The back end of the money market curve has adjusted with higher yields; 1-year LIBOR, having reached a new low of 0.22% in September is now yielding 0.36% at the time of this writing. One year Treasury Bill yields also adjusted higher, starting the month at 7bps and ending at 12bps. Seeing the curve steepen in the Bill market is a welcome relief — unfortunately for our clients however, yields on Money Market funds have failed to adjust due to waivers keeping the yields higher. Money fund investors won’t see higher yields until the first rate hike.