In contrast to analysts’ warnings that a strong non-farm payrolls report could weigh on the US Federal Reserve’s chances of continuing to cut interest rates, bets on another quarter-point cut at the Fed’s meeting two weeks later jumped from 2 from 3 to More than 9 out of 10 futures positions are tracked by the CME Derivatives Exchange’s FedWatch tool.
This puts the futures market’s typical forecast for the Fed’s interest rate hike at the end of the year in line with the US central bank’s forecast of 4.40%.
Longer-term borrowing costs also fell in the bond market on Friday despite strong jobs data in the United States, which led to a decline in 10-year US Treasury bond yields to their lowest level in about 4 weeks, below 4.14% annually.
