Feb 11 (Reuters) – Traders of futures tied to short-term US borrowing costs trimmed bets Wednesday on Federal Reserve interest-rate cuts this year, after a government report showed employers added more jobs than expected last month. Traders moved to price out all but a one-in-five chance of a Fed policy rate cut by April, versus […]
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Traders trim bets on Fed rate cuts after jobs report
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Feb 11 (Reuters) – Traders of futures tied to short-term US borrowing costs trimmed bets Wednesday on Federal Reserve interest-rate cuts this year, after a government report showed employers added more jobs than expected last month.
Traders moved to price out all but a one-in-five chance of a Fed policy rate cut by April, versus about a two-in-five chance seen before the data.
Though they are still betting the US central bank will next reduce its policy rate in June, they see almost a 40% chance it will not move then, versus about 25% before the jobs report.
(Reporting by Ann Saphir; Editing by Andrew Heavens)