If there's any doubt the Fed is targeting December for its first rate hike, just look at the bond market.
The 2-year yield touched 0.91 percent early Friday, as investors reacted to the words of Fed Vice Chairman Stanley Fischer. The yield was just under 0.90 in afternoon trading, and analysts say it is in a range that could be stretched in the next few weeks if the Fed's path to rate hikes remains on track. The 2-year last traded at that level more five years ago.
"The bond market is saying the Fed's going to raise rates, make no mistake about it," said David Ader, chief Treasury strategist at CRT Capital. Ader said his target for the 2-year is 0.95 percent.