December Fed Hike Odds Approach 80% as Traders Pivot to Payrolls

Futures traders added to wagers that the Federal Reserve will tighten policy next month after officials left interest rates on hold and kept the option open for a hike by year-end.

Treasury yields remained lower as policy makers said “the case for an increase in the federal funds rate has continued to strengthen” as they kept its range at 0.25 percent to 0.5 percent, as forecast by all 90 economists surveyed by Bloomberg News. Officials came into 2016 projecting four hikes this year but haven’t moved once amid signs of tepid inflation and stagnant global growth.