Treasury Volatility Climbs as Traders Await Fed's High-Wire Act
- Gauge of market price swings climbs to highest in five months
- Futures show 76% probability of Fed liftoff on Wednesday
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Treasury market volatility climbed to a five-month high as investors bet that the Federal Reserve will raise interest rates for the first time in almost a decade.
Futures contracts show traders are preparing for Fed Chair Janet Yellen and her fellow policy makers to raise rates as a two-day meeting comes to a close Wednesday. An increase would end the emergency policy of keeping the benchmark close to zero that was put in place in December 2008 to support the economy during the global financial crisis.