NEW YORK Feb 7 U.S. short-term interest rates
futures rose on Friday, erasing earlier losses after a sharply
weaker-than-expected U.S. payrolls report for January raised
expectations the Federal Reserve would leave policy rates near
zero longer than previously thought.
The U.S. Labor Department said domestic employers added
113,000 workers last month, fewer than the 185,000 forecast by
analysts polled by Reuters. The jobless rate as expected dipped
to 6.6 percent from December's 6.7 percent.
The rise in federal funds futures suggested traders reckoned
less likelihood the U.S. central bank would hike the overnight
interbank rate at its July 2015 policy meeting. They now
expected a rate hike would more likely occur in the third
quarter of 2015
The July 2015 fed funds contract last traded at
99.70, up 1 basis point from Thursday's close. It erased an
earlier decline of 1.5 basis points before the release of the
government's January jobs data.