Fed's Rate Hike Cycle Has Peaked, Investment Banks Say

"The move higher in Treasury yields and the dollar in the wake of the Fitch downgrade and the U.S. Treasury funding announcement only adds to our conviction that the Fed won’t need to hike interest rates further. These market moves in combination with higher volatility are tightening monetary conditions and will also put up mortgage rates and corporate borrowing costs," Knightley said, referring to Fitch Ratings' downgrade of the U.S. government's credit rating last week and to the Treasury increasing the size of its quarterly bond sales.