Rate Traders Pile Into Option Bets as Fed Hike Expectations Grow
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Traders of short-term interest-rate derivatives appear to be piling back into bets about the timing of the Federal Reserve’s first monetary policy tightening ahead of the central bank’s meeting next week.
At the end of the two-day session, the Fed is widely expected to announce plans to begin tapering its massive bond-buying program. Yet when it will begin raising interest rates remains the wildcard and that’s a favored angle for speculative trading in money markets.