The Fed Funds futures curve steepened again on Friday, bringing forward the implied date of the first rate hike by the Fed.
|Fed Funds futures curve shift as a result of Friday’s employment report|
The date is now closer to October of 2014 as opposed to May of 2015 discussed about a month ago (see post) – an immense steepening in such a short time. That means the market now expects the current securities purchase program to end before the start of the fourth quarter of 2014.
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