: Fed funds futures traders see 82% chance of quarter-point rate hike in May after comments by Waller; 2-year Treasury jumps to 4.08%

Read Time:38 Second

Fed funds futures traders now see an 82.3% chance of a 25-basis-point rate hike by the Federal Reserve in May after Governor Christopher Waller said policy makers need to keep raising borrowing costs. Such a move would take the fed funds rate target to between 5% and 5.25%. The odds of another quarter-point hike in June also jumped to almost 18%, as traders also pulled back on the extent of rate cuts they expect later this year, according to the CME FedWatch Tool. Treasury yields jumped, with the 2-year rate soaring 9 basis points to 4.08%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.