NEW YORK Nov 8 U.S. short-term interest rates
futures fell on Friday after data showed surprisingly strong
U.S. jobs growth in October, reinforcing expectations the
Federal Reserve would raise its policy rate by the middle of
The Labor Department said U.S. employers added 204,000
workers in October, far more than the median forecast of 125,000
among economists polled by Reuters. The September figure was
upgraded to 163,000 from the originally reported 148,000.
The April 2015 federal funds contract fell 2.5 basis
points to 99.755, while the June 2015 contract declined
3.5 basis points to 99.655.
These levels implied traders expect a 47 percent chance the
U.S. central bank will hike rates in April 2015 and a 55 percent
chance of a rate hike in June 2015, according to CME Group's
FedWatch program which calculates traders' expectations on the
changes to Fed's policy rate.
On Thursday, the April 2015 fed funds contract suggested a
43 percent chance of a rate hike and the June 2015 contract a 51