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Investors Price In A Rate Hike As They Look For Improvement In Monthly Retail Sales

It wasn't a great close to an otherwise stellar week on Wall Street as the major indices marched higher through the week only to give up some of those games on Friday. With the latest jobs number coming in better than expected and with positive revisions to prior monthly jobs reports, investors and traders began to price in an eventual rate hike from the Federal Reserve. In a speech on Friday afternoon, Atlanta Fed President Dennis Lockhart said conditions are likely to come together to allow the U.S. central bank to hike rates anytime "from June on."

On Friday, the Fed funds futures contract now implied a rate between 1.23-1.5% in December 2016 would present itself. Treasury yields saw outsized moves Friday with the U.S. 10 Year Treasury (US10Y) jumping nearly 20 bps and finishing just below a yield of 1.95 per cent.

As investors and traders look forward… Read More …