Traders raise bets of Fed rate hike after jobs report
TLT•Traders priced an 80% chance of a quarter-point Fed rate hike in December, up from 75% before a jobs report showed 165,000 jobs added and unemployment at 4.1%.
1. Rate hike bets rise
Futures tied to the Fed’s policy rate showed an 80% probability of a quarter-point rate increase in December after a government report showed employers added 165,000 jobs last month, more than twice economists’ expectations. The unemployment rate ticked down to 4.1%; before the report, traders had priced a 75% chance of a December hike.
