June's Fed Rate Hike Probabilities Jump Amid Debt Ceiling Deal Hopes: Investors On Edge As All Eyes Turn To Jobs Data
Portfolio Pulse from Piero Cingari
The implied odds of a Federal Reserve rate increase in June have increased, with a 60% probability of a 25-basis-point hike to 5.25%-5.5%. The preliminary debt ceiling deal, higher-than-expected PCE inflation, and hawkish Fed statements contribute to this expectation. The Ishares 1-3 Year Treasury Bond ETF (NYSE:SHY) has lost nearly 1% over the past two weeks.
May 30, 2023 | 5:07 pm
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The Ishares 1-3 Year Treasury Bond ETF (NYSE:SHY) has lost nearly 1% over the past two weeks as the implied odds of a Federal Reserve rate increase in June have increased.
The increased probability of a Fed rate hike in June has put pressure on the Ishares 1-3 Year Treasury Bond ETF (NYSE:SHY), causing it to lose nearly 1% over the past two weeks. As the odds of a rate hike increase, investors may be shifting their focus away from shorter-term bonds, leading to a decline in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80