Traders add a bit to bets on Fed rate hike
TLT•Fed hike odds rise after producer price data
Sept. 10 (Reuters) - Traders added to bets the Federal Reserve will raise short-term interest rates at its meeting next week after the first of this week's key inflation reports showed producer prices rose 5.4% in the 12 months through August.
Before the report traders had seen about a 65% chance of a quarter-point rate hike at the Fed's Sept. 15-16 meeting. That probability is now seen at about 70%, based on the price of Fed funds futures contracts traded at CME Group.
