Traders Amplify Bets on Fed Rate Hikes, Projecting 20 Basis Points Increase This Year
Deep News
Mar 23
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.
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