Bond traders are calling Fed’s March rate hike bluff - BBG

Dhwani Mehta FXStreet

Bloomberg out with a piece on Monday, highlighting that traders see slightly more than a one-in-three chance the Federal Reserve (Fed) raises rates. That’s well short of the 50% minimum that has predicated every rate hike in the past quarter-century, according to data compiled by Bianco Research.

Jim Bianco of Bianco Research noted, “The market recognizes it has a veto over the Fed. It might be too late at that point for them to do anything, even if we get eye-popping numbers.”

Currently, the odds are decidedly against an increase in March. Futures traders are pricing in just a 40% probability for a rate lift-off at March meeting.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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