Fed funds traders see 91% chance of 75 basis point hike in June, according to CME FedWatch Tool

38466 fed funds traders see 91 chance of 75 basis point hike in june according to cme fedwatch tool

Traders of fed-funds futures see a 91% likelihood that the Federal Reserve delivers a 75 basis point rate hike in June, up from 19% a month ago, based on the CME FedWatch Tool. They are factoring in the prospect of a jumbo-sized move on top of an almost 100% chance of a 50 basis point increase by the Fed on Wednesday. A half-point move this week plus even larger hike in June would take the fed funds rate up to 1.5% to 1.75%, from its current level of 0.25% to 0.5%. Also on Monday, the 10-year Treasury rate inched TMUBMUSD10Y, 2.980% toward 3%, while the 7- TMUBMUSD07Y, 3.026%, 20- TMUBMUSD20Y, 3.241% and 30-year Treasury yields TMUBMUSD30Y, 3.032% all breached that mark.

Source: Marketwatch

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