August 5, 2019 / 12:51 PM / 4 months ago

MONEY MARKETS-Traders build bets on 50-bps U.S. rate cut in Sept

NEW YORK, Aug 5 (Reuters) - U.S. interest rates futures jumped on Monday as traders increased bets the Federal Reserve will lower key lending costs by half a point next month to counter the risk to the economy from rising trade tensions between China and the United States.

At 8:28 a.m. (1228 GMT), federal funds futures suggested traders positioned for a 17% probability the U.S. central bank will decrease the target range on interest rates to 1.50%-1.75% at its Sept 17-18 policy meeting, up from 2% late on Friday, according to CME Group’s FedWatch tool.

The Fed’s target range on borrowing costs is currently at 2.00%-2.25%. (Reporting by Richard Leong; EDiting by Steve Orlofsky)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below