Bond traders bet that the probability of a Federal Reserve rate hike exceeds 50%

ChainCatcher news, according to Golden Ten Data, bond traders are increasing their bets that the Federal Reserve’s next policy move may be a rate hike rather than a cut. Swap contracts linked to central bank interest rate decisions indicate that the market now sees over a 50% chance of a rate hike by the Federal Reserve before April next year, ahead of any rate cut. Lawrence Gillum, chief fixed income strategist at LPL Financial, stated that while the possibility of a rate cut this year still exists, this likelihood decreases as the Iran conflict drags on.