How the Treasury's bond intervention impacted markets

• CME FedWatch Tool indicates a 65-66% chance of a quarter-point Fed hike if the meeting were today.
• Santelli views rising US interest rates as a 'normalization' from a decade of manipulated low/negative rates, suggesting current rates are still 'tame' and should be higher.
• Kelly Evans questions Treasury Secretary Yellen's bond repurchase actions as market manipulation, drawing parallels to Japan's past yield curve control efforts.
• Santelli refutes the Japan comparison, citing differences in debt ownership and magnitude, and credits Yellen for attempting to address Fed-induced market distortions.

The discussion focuses on the bond market's reaction to potential Fed rate hikes and Treasury actions. Rick Santelli argues that the market is correctly pricing in rate increases as a normalization from a manipulated decade, dismissing panic and suggesting rates are still too low. Kelly Evans raises concerns about Treasury intervention and parallels with Japan's past bond market issues.