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Traders Price In Near-Even Odds of 75-Basis-Point Fed Hike in June
The U.S. bond market stands on the cusp of pricing in the prospect of the most aggressive rate hike seen from the Federal Reserve in nearly three decades. For the first time this year, traders are pricing in a near-equal chance that Fed policy makers in June will raise their benchmark rate by 75 basis points, following the half-point move that’s expected at their meeting next week. The Fed hasn’t done a 75-basis-point increase since the aggressive tightening cycle of 1994 that was followed by modest rate cuts in 1995 amid a steady economic expansion. Swap contracts for June were pricing in 111 basis points of ... (full story)