Traders of fed-funds futures see a 91% likelihood that the Federal Reserve delivers a 75 basis point rate hike in June, up from 19% a month ago, based on the CME FedWatch Tool. They are factoring in the prospect of a jumbo-sized move on top of an almost 100% chance of a 50 basis point increase by the Fed on Wednesday. A half-point move this week plus even larger hike in June would take the fed funds rate up to 1.5% to 1.75%, from its current level of 0.25% to 0.5%. Also on Monday, the 10-year Treasury rate inched toward 3%, while the 7- , 20- and 30-year Treasury yields all breached that mark.
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