Traders bet on rising rates after Fed's Yellen signals hikes are coming
(Reuters) - U.S. short-term interest rate futures contracts fell on Friday after Federal Reserve Chair Janet Yellen said it would probably be appropriate to raise rates in coming months.
The price of futures contracts tied to the Fed's benchmark policy rate moves inversely to the rate that traders expect at any given point in time, and the drop suggests traders are boosting bets the Fed will raise rates as soon as next month.
Traders bumped their view of the chances of a June rate hike to 34 percent, from 30 percent before Yellen spoke, according to analysis by CME Group, where the futures contracts are traded.
(Reporting by Ann Saphir; Editing by Diane Craft)
