NEW YORK (Reuters) - U.S. interest rates futures fell on Tuesday as data on domestic retail sales in April supported a notion that consumer spending is set to accelerate following a sluggish first quarter.
At 11:28 a.m. (1528 GMT), federal funds futures implied that traders saw a 54 percent chance that the U.S. central bank would raise the overnight costs for banks to borrow each other’s excess reserves to 2.25-2.50 percent by year-end. This compared with just a tad below a 50 percent chance late on Monday, according to CME Group’s FedWatch program.
Fed funds contracts suggested traders have priced in a 100 percent likelihood that the Fed would hike rates at its June 12-13 policy meeting FFM8 FFN8.
Reporting by Richard Leong; Editing by Bernadette Baum