Federated's "Month in Cash" is entitled, "With inflation on the radar screen, could rate hikes be next?" It says, "In an apt reflection of the fearsome winter weather that gripped much of the country in February, short-term interest rates remained virtually frozen in place despite a news-heavy calendar that suggested changes in the cash-yield curve might not be far off.... Still, the cash-yield curve barely budged in February, with the one-month London interbank offered rate (Libor) closing at 0.26%, three-month Libor at 0.31%, six-month Libor at 0.46% and one-year Libor at 0.79% Only six-month rates showed any overall movement, rising by a scant basis point. However, the yield on two-year Treasury notes did jump by 15 basis points to 0.73% as investors recalibrated their expectations for the initial round of Fed tightening.... We continue to believe that the initial interest rate hike will occur somewhat sooner than the consensus believes and that inflation will be the ultimate trigger for the Fed's action." In other Federated news, the $11 million Federated Maryland Muni Cash Tr (MDMXX) was liquidated on Feb. 25. (See the filing here.)

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