June 1, 2018 / 12:50 PM / 5 months ago

Traders boost bets on Fed interest rate rises

June 1 (Reuters) - Traders of U.S. short-term interest-rate futures on Friday increased bets the Federal Reserve will raise rates a fourth time this year after a government report showed employers added more jobs than expected in May.

The price changes showed traders are quite confident of rate hikes in June and September, and see about a 37 percent chance of a further rate hike in December, up from about 32 percent before the report. The Fed has raised rates once this year so far, in March.

Prices of futures tied to the U.S. central bank’s main policy rate and that mature next year also fell, signaling heightened expectations for rate increases in 2019 as well. (Reporting by Ann Saphir in San Francisco Editing by Chizu Nomiyama)

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