Fed seen sticking to December rate hike after jobs data
TLT•Markets priced an 85% chance of a quarter-point Fed rate hike in December after US employers added 165,000 jobs in October and unemployment fell to 4.1%. Traders also moved expectations for a further increase to April from June.
1. Jobs data shifts rate bets
US employers added 165,000 jobs in October, more than twice economists had expected, and the unemployment rate ticked down to 4.1%, the Bureau of Labor Statistics said. After the report, markets priced an 85% chance of a quarter-point Fed rate increase at its December 8-9 meeting, up from about 75% before.
2. Traders see earlier increase
Traders also moved expectations for a further rate increase to April from June. Raymond James analysts said they expected the Fed to raise the federal funds rate by 25 basis points in December.
