Market bets on 50 bp Fed rate hike begin building after hot CPI
TLT•Bets on a 50-basis-point Federal Reserve rate hike in December began to build after hotter-than-expected inflation. A 25-basis-point hike was fully priced in, while the probability of a 50-basis-point move stood at around 10%.
1. Rate hike bets
Bets on a 50-basis-point Federal Reserve rate hike in December began to build after a hotter-than-expected Consumer Price Index reading and comments from a Fed official supporting more aggressive action if inflation ran too hot. A 25-basis-point hike was fully priced in, while CME FedWatch put the probability of a 50-basis-point hike at around 10%.
