(Bloomberg) -- Money markets now see the Federal Reserve terminal rate at 4% for the first time, and are pricing for it to get there by the middle of next year. 

The recalibration in market expectations comes as Wall Street weighs the possibility of the Fed gearing up for even greater rate hikes than the half-point increase it’s set to deliver at a policy decision this week. 

The repricing has spurred a relentless selloff in Treasuries, with yields across the curve soaring. The rate on the benchmark three-year US security climbed more than 30 basis points to as much as 3.56%.

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