1427 ET - The Fed's hike eases investors' fear that inflation will run unchecked, TwentyFour's Felipe Villarroel say in a note. Another key driver of the bond selloff remains, though: the risk that Washington won't take action to balance the books. Fiscal policy "is not getting any better and the war in Iran and floating plans such as giving voters money...certainly does not help," he says. Villarroel expects only one more hike, with cuts starting in 2028 or 2029. He believes current inflation isn't entirely due to supply shocks and strong economic growth is also to blame.