Small font size A Larger text size A Largest text size A

Traders keep bets on Fed rate hike by October

BY Reuters | ECONOMIC | 08:57 AM EDT

June 10 (Reuters) - Traders of short-term U.S. interest rates edged away from bets that the Federal Reserve rate will deliver a rate hike as soon as September, but continued to show strong conviction of a rate hike by October, after a government report showed consumer inflation rose 4.2% last month as economists had expected.

Pricing now reflects about a 45% chance of a September rate hike, versus just under 50% before the report. Traders see about a 60% chance of a hike by the October meeting.

(Reporting by Ann Saphir)

More Fixed Income News

National Bank of Canada Initiates Coverage of Champion Iron, Oceanic Iron Ore BY MT Newswires |ECONOMIC 10:28 AM EDT
Bank of Canada Continues to Be "Very Patient" as Assesses How Risks Play Out, Says CIBC BY MT Newswires |ECONOMIC 10:26 AM EDT
CANADA STOCKS-TSX slips on escalating Middle East tensions; BoC keeps rates steady BY Reuters |ECONOMIC 10:22 AM EDT
TREASURIES-US yields ease as core CPI cools BY Reuters |ECONOMIC 10:20 AM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article