The latest data from the CME Fed watch indicates the odds of a 25bps rate hike
shot up across the board on the back of a stellar
October Non-farm payrolls report released today.
The December rate hike probability now stands at 71.7%, compared to 58% seen ahead of the data. The January rate hike probability now stands at 75.8%, while March probability now stands at 85.2%; out of which 31.74% represents move in the bank rate to 0.75%.
The Treasury yields also spiked, which also says the odds of a rate hike have increased. The 2-yr treasury note, which is more policy sensitive, rose to a high of 0.958%; its highest since May 2010.
The December rate hike probability now stands at 71.7%, compared to 58% seen ahead of the data. The January rate hike probability now stands at 75.8%, while March probability now stands at 85.2%; out of which 31.74% represents move in the bank rate to 0.75%.
The Treasury yields also spiked, which also says the odds of a rate hike have increased. The 2-yr treasury note, which is more policy sensitive, rose to a high of 0.958%; its highest since May 2010.
