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Good morning. Today is Wednesday, April 6th, and I'm your host Rina Schirbal. Our top stories today.

Fed gets serious about inflation and Dave and Busters acquires main event.

Leading today's news, investors have been hit with an early surprise before the release of Wednesday's

FOMC minutes, which was supposed to give some clues about a reduction of the Central Bank's $9 trillion balance sheet

following a quarter-point rate hike in March. The clues are no longer needed.

Fed Vice Chair Brainard preempted the minutes on Tuesday by saying a rapid reduction could happen as soon as May,

calling the move of paramount importance to bring down inflationary forces,

while the Fed is prepared to take stronger action if indicators show such action is warranted.

Treasury yields shot up on the news, climbing 14 basis points on Tuesday to settle at just

over 2.5%.

Things kept going on Wednesday morning, with the yield breaching the 2.5%. Things kept going on Wednesday morning with the yield

breaching the 2.6% level after rising 7 basis points to 2.62%. When the

Fed, the biggest buyer of Treasuries, reduces its balance sheet, the market is flooded with supply.

Meaning prices go down and yields go up.

The two have an inverse relationship.

As in most markets, current yields factor in future conditions, and all of those are now

pointing to a faster pace of quantitative tightening.

Besides pulling liquidity from the financial system, another catalyst Wayne on the bond market was a fresh

sanctions package announced by the EU that proposed a ban on coal imports from

Russia. The elevated commodity prices that are likely to ensue will drive inflation even higher,

...