Bond Traders Ramp Up Bets on September for a Third 2017 Fed Hike
- Market odds for June boost at almost 80%, growing for Sept.
- Consistency from Fed officials seen as key for expectations
BlackRock's Rosenberg Says Fed Rates Anchored by ECB, BOJ
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The bond market may finally be getting the Federal Reserve’s message.
Traders are already mostly on board with the central bank raising rates at its June meeting, pricing in odds of a hike at almost 80 percent, judging by the current effective fed funds rate and the forward overnight index swap rate. But they’re also growing more confident that the Fed will go again in September, with the probability of such a move approaching 40 percent on Tuesday, about double what it was a week ago.