Bond Traders Show Skepticism of Goldman's Forecast for Fed Hikes
- Market is unprepared for Fed shift, Nomura's John Gorman says
- U.S. plans to sell three-, 10-, 30-year debt starting Tuesday
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Bond traders are betting the odds of a Federal Reserve interest-rate increase this year are less than a coin toss, clashing with Goldman Sachs Group Inc.’s call for three moves.
Futures contracts indicate there’s about a 48 percent chance the Fed will follow its December rate increase with one more in 2016. The figure has plunged from more than 90 percent at the end of 2015 as Fed Chair Janet Yellen and other officials warned that heightened risks in the global economy are reason for the U.S. central bank to delay tightening policy.