Traders are pricing in four quarter-point rate hikes by the Federal Reserve by June 2027, which would bring the federal funds rate to a 4.75% to 5% range. This comes as U.S. Treasury yields across the curve push to new highs, with the 20-year yield nearing 5.5% and the 10-year yield above 5.1%, levels last seen in 2007. Higher yields and a stronger dollar (dollar index above 101, up 3% this year) are weighing on risk assets, causing bitcoin to fall below $83,000 and gold to remain just above $4,200, down 25% from its January all-time high. The strong U.S. economy, Middle East tensions, and heavy borrowing for AI infrastructure are cited as factors pushing yields higher.