There's a lot of focus in the bond market on oil. It's been such a hot story because of people's fears of higher inflation.

When you have a focus on an issue like Iran, hoarding tends to be prompted. Crude oil is not the only area where hoarding occurs; it also takes place in the products. Distributors like to stay ahead of the price rises and hedge by buying additional supply.

The question is whether prices are sustained -- then the burden of oil subsidies comes under stronger focus. It needs careful political consideration to avoid a backlash.

I think overnight there was another focus on the bank of Canada statement and it pushed aside the oil sell-off, as monetary policy is probably going to have a longer term role than oil.

A 25 basis-point (one-quarter percentage point) move is very likely and is the most likely outcome.

The data gives investors hope the Fed won't have to stay aggressive too long.