Bond traders see 90% chance of December hike after Fed holds
US Treasury yields rose after the Fed held rates at 3.75%-4%, with traders pricing in a 90% chance of a quarter-point hike in December.
US Treasuries held small losses after the Federal Reserve held interest rates steady and reinforced traders’ expectations that tightening will resume in December. The declines on Wednesday sent yields higher after the rate decision, with those on two year notes — which are more sensitive to the Fed’s policy path — up about three basis points to 4.76%. Traders were pricing in about a 90% chance of a quarter-point rate increase when policymakers next meet in December.
