Fed Traders Fully Price In an Interest-Rate Hike Once Again
- Two-year yield rise above 4.5%, up for 10 straight sessions
- June and July swaps show at least a quarter-point hike priced
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Traders fully priced in another quarter-point interest-rate increase by the Federal Reserve within the next two policy meetings and a more than one-in-two chance that hike could arrive as soon as next month.
The shift came as US yields rose, with the policy sensitive two-year rate rising 15.7 basis points to 4.53%. That’s the highest level since early March, around the time when US bank failures roiled markets and spurred haven buying in government debt.