Traders Bet Big on Fed Rate Hike

Bond traders are increasingly convinced that the Federal Reserve will raise interest rates at its upcoming meeting. According to data from interest-rate swaps tied to Fed meeting dates, traders see a 94% chance that the Fed will lift the benchmark policy rate by a quarter point from the current 3.5%-3.75% range.

The level of conviction among bond traders is notable, as it has proven right for decades. This confidence comes despite any cautionary or contrarian views, which are not mentioned in the source.