According to a note from Ed Alhussaini of Columbia Threadneedle, markets have repriced the Federal Reserve's terminal rate by just under 100 basis points over the past two months.

The yield curve has flattened significantly, with the spread between 5-year and 30-year yields reaching its lowest level in approximately a year.

Ed Alhussaini predicts the Federal Reserve will remove language indicating an easing bias from its statements in its June meeting.

The current market consensus is that economic growth is solid and the labor market has stabilized for the foreseeable future.