Traders are casting aside wagers on rate hikes across the world -- including pricing out unusually large Federal Reserve interest-rate hike in March -- amid concern that the fallout of Russia’s invasion of Ukraine will weigh on the growth outlook.
Swaps linked to the Fed’s March 16 meeting dwindled to just 22 basis points of tightening on Tuesday. That suggests traders don’t even expect a full quarter-point hike -- a contrast from last month, when a half-point move was all but fully priced amid concern over accelerating inflation. Bonds rallied across the curve, led by short-dated tenors.
