Market Sees Slight Chance of Negative U.S. Rates for July

Market Sees Slight Chance of Negative U.S. Rates for July

© Reuters. © Reuters.

By Kim Khan 

Investing.com – The market believes that there’s a slight chance the Federal Reserve could send interest rates into negative territory as early as July, fed funds futures showed today.

There was a 0.4% chance of rates being in the range of 0 to -0.25% after the Federal Open Market Committee’s July meeting, according to Investing.com’s .

The most likely scenario is that rates will be between 0.25% to 0.5%, with a half-point cut fully priced in for the meeting this month, according to the futures.

Goldman Sachs (NYSE:) said today it sees rates moving to 0% to 0.25%, lows not seen since 2015.

Treasury yields plunged again today as money poured out of risk assets and into bonds. The full Treasury yield is now below 1%.

President Donald Trump has consistently called on the Fed to move rates into negative territory, in line with the European Central Bank. Trump said at the World Economic Forum in Davos, Switzerland that he likes the idea of getting paid to borrow money.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest Category Posts