Yellen’s Calendar Quandary

March 14, 2016

Making the Case for a Surprise Rate Hike

An article in Bloomberg caught my eye this weekend. The headline was “Bond Traders Give Fed Green Light to Lift Rates as Soon as June.” Accompanying the article were several interesting Bloomberg Professional® graphs and pages. For me, the following one really stood out.

bberg hike odds

The way to read the chart is to recognize that the body (right hand side) of the display is the bond market’s expectation, calculated from the price of Fed Funds interest rate futures and options over the coming year. Read the rest of this entry »