Traders are increasing their wagers on the Federal Reserve raising interest rates, now expecting a 20 basis point hike by the end of the year.

Swap transactions indicate that the Federal Reserve will implement a 20 basis point rate increase this year. This is a rise from the expectation of an 8 basis point hike last Friday and a projection of a 25 basis point cut just one week ago.

The yield on the 2-year U.S. Treasury note climbed by as much as 9 basis points, reaching 3.99%.

Note: Traders have fully priced in expectations for the Bank of England to execute four separate 25 basis point interest rate increases this year.