Short maturity government bond yields in Europe and the US may move somewhat high in the near term, according to Bloomberg Intelligence.

In this Macro Matters edition of the Bloomberg Intelligence FICC Focus podcast, Chief US Interest Rate Strategist Ira Jersey is joined by his European counterpart Huw Worthington to discuss the February meetings of the US, UK and European central banks and the corresponding rate markets. Jersey notes his view that the market still doesn’t think the Federal Reserve can remain on hold, even though Chairman Jerome Powell explicitly said the Fed wouldn’t cut. Worthington thinks short-term German yields are about 0.5% too low, but that the markets are broadly in a range near term.

In the Interest Rate Intro segment, BI Strategy Associate Will Hoffman asks Jersey why he thinks the market doesn’t believe in the Fed’s resolve.

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US, UK, EUR Rates Markets: Macro Matters