Bond Traders Caught Napping as Fed Talks Tough on June Meeting
- Odds of June rate increase climbs to 32% from 4% on Monday
- ‘This is a pain move,’ Bank of Tokyo-Mitsubishi’s Rupkey says
The Fed Sets the Table for a June Rate Hike
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It took only a few days for interest-rate anxiety to flood back into the bond market.
After dismissing the chance of a Federal Reserve rate increase in June, traders reversed course Wednesday when minutes from the most recent Federal Open Market Committee meeting sent yields soaring. Most officials said at the April gathering that a move in June would be warranted if economic data indicate stronger growth and inflation.