Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

The first Fed rate hike is now expected as early as July following the hot CPI data

by
November 10, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Energy agency chief warns transition to renewables is off track, issues warning on stranded assets

Buying the dip on energy stocks? Wall Street pros name their top picks

Traders on the floor of the NYSE

Source: NYSE

Traders in the futures markets moved up their expectations for the first Federal Reserve interest rate hike to July from September, following a hotter than expected inflation report.

“It’s a very sharp move we’re seeing the back end of 2022,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

October’s consumer price index came in at a scorching 6.2% year-over-year, higher than the 5.9% expected.

Traders are now fully pricing in a first rate hike for September, but they are pricing in much higher odds that the Fed starts to raise rates sooner. The Fed has said it would complete tapering its bond buying program by the middle of the year, and then begin raising interest rates.

“The effective fed funds rate is currently at 8 basis points and the fed funds July contract is priced at 27 basis points,” said Boockvar. Each rate hike is assumed to be a quarter of a percentage points.

“That implies the odds are about 80% that they raise rates by July,” he said.

“Fed funds are pricing in more hikes sooner. I think it’s too much,” noted Michael Schumacher, Wells Fargo director rates.

Fed funds futures also show they now expect a second full hike by December, with the contract trading at 0.57%, noted Ben Jeffery, fixed income strategist at BMO.

Strategists are watching the move in the Treasury curve which is showing a narrowing between long end yields, like the 30-year and the shorter end, like the 5-year

“The flattening of the curve reflects more hawkish fed assumptions, also reflected in the fed funds futures market,” said Jeffery. He said the spread between the 5-year and 30-year is narrower, at 68 basis points, or 0.68 percentage points. That is the flattest since the early weeks of the pandemic in March, 2020.

A flattening yield curve can indicate that investors are worried about a weakening economy.

ShareTweetPin

Related Posts

Energy agency chief warns transition to renewables is off track, issues warning on stranded assets

by
March 28, 2023
0

The current German coalition government is seeking to accelerate the country's transition away from fossil fuels and nuclear to renewable...

Buying the dip on energy stocks? Wall Street pros name their top picks

by
March 28, 2023
0

Energy was the second-best-performing sector of the S & P 500 last week, as investors flocked back into the stocks...

Chipotle to pay ex-employees $240,000 after closing Maine location that tried to unionize

by
March 28, 2023
0

In this article CMG Follow your favorite stocksCREATE FREE ACCOUNT Chipotle Mexican Grill has agreed to pay $240,000 to the...

Most Americans think Trump did something illegal or unethical, poll finds

by
March 28, 2023
0

Former US President Donald Trump speaks at a campaign event in Waco, Texas, US, on Saturday, March 25, 2023. Brandon...

4G internet is set to arrive on the moon later this year

by
March 28, 2023
0

In this article NOKNOKIA-FI Follow your favorite stocksCREATE FREE ACCOUNT Nokia hopes to install a data network on the moon...

Next Post

Gold, bitcoin lead gains in inflation hedges following biggest CPI jump in 3 decades

This inflation-fighting stock screen shows companies increasing profitability in this environment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net