This Bond Trader Is Expecting Fireworks From Jackson Hole

Eurodollar futures shows at least one trader is betting that Janet Yellen will reignite expectations for a faster pace of interest-rate increases when she speaks Friday in Jackson Hole. The steepening trade put on Wednesday looks to cash in on the eurodollar strip being close to the flattest levels of the year, reflecting odds of a December rate hike recently dropping to just 30 percent based on OIS. Open interest, or the amount of new risk, jumped 10 percent in the December 2020 eurodollar futures, according to CME data, reflecting the new position.

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