Skip to content
Subscriber Only

Bond Traders Signal Two Rate Hikes in 2017, While Fed Sees Three

  • Futures signal 78% chance of next move coming by June
  • Dollar rises, two-year yields reach highest since 2009
Updated on

Bond traders are signaling they agree with the Federal Reserve’s decision to project a steeper path of interest-rate increases. They’re just not sold on the frequency.

Officials lifted their target for overnight borrowing costs by a quarter-point to a range of 0.5 percent to 0.75 percent Wednesday, the first hike in a year. They also released a projected rate path, known as the “dot plot,” calling for three quarter-point hikes in 2017, up from the two seen in previous forecasts in September.