Traders see increased chance of 50 basis point Fed hike in March after strong jobs report

31701 traders see increased chance of 50 basis point fed hike in march after strong jobs report

Fed funds futures reflect a higher possibility of a 50 basis point rate increase by the Federal Reserve in March, after January’s nonfarm payrolls data produced a greater-than-expected 467,000 gain. The probability of a 50bps hike was 27% as of Friday morning, up from 14% on Thursday, according to the CME FedWatch Tool. Meanwhile, the likelihood of a 25 bps hike fell to 73% from 86%. The shifting expectations came as investors also sold off Treasurys on Friday, pushing the 10-year yield TMUBMUSD10Y, 1.913% above 1.9% as attention turns to next week’s consumer-price index report.

Source: Marketwatch

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