Economics
Bond Traders Have Got It All Figured Out as Fed Meets on Rates
- Treasury market confident Fed on hold as volatility plummets
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For bond traders, there’s little doubt about the path the Federal Reserve will take on interest rates.
They aren’t fully pricing in another increase until February, while driving a gauge of expected volatility in Treasuries to the lowest since 2014 this month. That’s the sort of hubris that can get them burned, according to Jerome Schneider, a money manager at Pacific Investment Management Co. and Morningstar Inc.’s 2015 fixed-income fund manager of the year.