Credit Suisse’s woes are “not new news,” Rabobank’s head of rates strategy Richard McGuire told CNBC — but the “jitters related to a possible systemic read across from Silicon Valley Bank” are. McGuire does not see central banks being “blown off course” by current stresses, saying that to do so would see them abandon their mandates to bring down inflation. He noted the market is now pricing in a little under 50% odds of one more 25 basis point rate hike from the U.S. Federal Reserve. “While reduced bank lending is a de facto tightening in and of itself we struggle to see the Fed and the [European Central Bank] relying upon such a mechanism when both its quantum and duration is impossible to predict,” McGuire said by email. “Furthermore, adjusting policy in the face of recent events is more likely to cause further alarm (by implicitly acknowledging the seriousness of the problem) rather than provide reassurance the situation is under control,” he added. “While there is an inherent unpredictability to the current situation, we think the market is overly quick to price out further tightening, meaning safe haven curves are likely to, once again, flatten back.” — Jenni Reid