Economics

Bond Traders Reject June as `Live' Meeting as U.S. Job Gains Ebb

  • Futures bets show 8% probability of rate increase next month
  • April employment report extends series of below-forecast data
Lock
This article is for subscribers only.

Bond-market traders and strategists are starting to tune out the authorities they once looked to for guidance on the path of interest rates as economic data fall short of forecasts.

Futures traders have all but ruled out the possibility that the Federal Reserve will raise rates at its next policy meeting in June, even after several officials this week said they were still considering that option. Economists at Goldman Sachs Group Inc.Bloomberg Terminal and Bank of America Corp.Bloomberg Terminal pushed back expectations for the next rate boost to September from June after a report Friday showed the U.S. added fewer jobs than forecast last month.