Bets on US rate cut grow after Fed’s patient stance - CME FedWatch

According to CME Group’s FedWatch program, the post-FOMC jump in the US interest rates futures implied that there could be nearly one-in-three chance the Fed would lower key lending rates by a 25 bps in the next 12 months vs. a one-in-five shot the previous day.

The rally in rates futures came a day after the Fed adopted a “patient “stance on future rate hike outlook.

Reuters reports: “Late on Thursday, the price of fed funds contracts for January 2020 delivery was 7.5 basis points higher than those for January 2019. This was the widest premium between the two contracts in four weeks, but well below the 18 basis points on Jan. 3.”