U.S. rate hike not expected to jolt markets

Standard Chartered notes as follows on Tuesday

• Most investors expect US rates to inch higher over the course of the year and agree with our bear-flattening view on US Treasury (UST) yields. They are largely indifferent on whether the first Fed hike happens in June or September. 
  
  
• While these investors expect a re-pricing of risk assets, they think it will be orderly given that the Fed hike has been well flagged, unlike the 'taper tantrum' of May 2013. 
  
  
• A handful of investors believe the Fed will not raise rates this year, as it cannot afford to do sowithout jeopardising the US recovery.