A March Rate Hike May Be in Play

Wall Street has changed its mind about an upcoming rate hike. The futures market is starting to think that a rate hike could come as soon as next month.

The latest prices put the odds of a Fed rate increase for March at 35.4%. For May, that rises to 53.4%. For June, it’s 70.6%. I’m leaning towards May, but the expectations have certainly shifted.

I’ve been watching the six-month Treasury. The yield got up to 0.72% today, which is an eight-year high. I realize that 0.72% doesn’t sound like much, and it’s not. But remember that the six-month yielded 0.02% a few years ago.

Posted by on February 28th, 2017 at 12:58 pm

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