Traders raised bets on a Federal Reserve interest-rate hike this December after a government report on Friday showed strong job gains. Employers added 165,000 jobs last month, while the unemployment rate fell to 4.1%. Markets now show an 80% probability of a quarter-point increase, up from 75% before the report.
Nov 6 (Reuters) - Traders added to bets that the Federal Reserve will deliver a second interest-rate hike in December after a government report on Friday showed stronger-than-expected job gains last month.
Futures tied to the Fed's policy rate were pricing about an 80% probability of a quarter-point rate increase next month after the report, which showed the unemployment rate ticked down to 4.1% and employers added 165,000 jobs, more than twice what economists had anticipated.
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Before the report, traders were pricing about a 75% chance of a rate hike in December.