NEW YORK, June 13 U.S. interest rates futures
slipped on Tuesday as traders seemed fully prepared for the
Federal Reserve to raise interest rates for a second time in
2017 at its upcoming two-day policy meeting that will begin
later in the day.
Rates futures prices matched Wall Street's consensus that
U.S. central bank policymakers would raise key overnight
borrowing costs by a quarter point to a target range of
The Federal Open Market Committee, the central bank's
policy-setting group, previously raised rates in March, marking
only its third hike since ending its near zero rate policy in
At 10:29 EDT (1529 GMT), federal funds futures implied
traders priced in a 100 percent probability of a rate hike to
1.00-1.25 percent , CME Group's FedWatch tool
Traders showed less conviction about a third rate hike this
year in light of recent signs of inflation softening.
Fed funds futures suggested traders saw about a 29 percent
chance of rates rising to 1.25-1.50 percent at the Fed's Sept.
19-20 meeting and a 57 percent chance of such a move at its Dec.
12-13 meeting .
(Reporting by Richard Leong; Editing by Chizu Nomiyama)