Fed fund futures traders boosted the likelihood of no further rate hikes by the Federal Reserve in September, November or December on Thursday, a day after a mixed consumer price index report for August was released. After factoring in a 97% probability that the Fed will leave rates unchanged at between 5.25%-5.5%, traders now see a 63.7% likelihood of no action in November and 59.9% chance of the same for December, according to the CME FedWatch Tool. That’s up from 57.4% and 53.8% respectively on Wednesday, despite Thursday’s better-than-expected producer price index and retail sales data for August. Treasury yields swung between advances and declines Thursday morning, with the policy-sensitive 2-year rate hovering at just under 5%.
This article was originally published by Marketwatch.com. Read the original article here.
