(Reuters) – Traders on Friday stuck to bets the Fed will raise its benchmark interest rate this month to a 5.25%-5.5% range, but are becoming more skeptical of the chance for further hikes beyond that after a government report showed employers hired fewer workers than expected in June.
Futures tied to the Fed’s policy rate rose after the report, pushing up implied yields and reflecting waning confidence of more than the quarter point increase now priced in for the U.S. central bank’s late-July meeting. Traders now see about a one-in-three chance of a further rate hike in November, down from nearly even odds before the report.
(Reporting by Ann Saphir; Editing by Toby Chopra)
