Fed Rate Hike in June Has Become a Coin Flip as Yields Climb
- Treasury two-year yield 0.40% for first time since March 2020
- Strong retail sales data spurred latest phase of bond selloff
This article is for subscribers only.
U.S. interest-rate traders have upgraded to almost 50-50 the odds that the Federal Reserve will raise interest rates by 25 basis points in June.
Interest-rate swaps referencing the June meeting of the Federal Open Market Committee price in around 12 basis points of an increase. A full hike is fully priced into the September meeting, with a second hike by February 2023.