Fed: Prospect of the tightening in December is well priced at 76% - BNZ

Jason Wong, Currency Strategist at BNZ, suggests that the prospect of the Fed tightening in December is well priced at 76%, according to the OIS market.

Key Quotes

“However, the market is likely thinking about how the Fed will respond, and how its language might change, amidst a tightening in financial conditions over recent months, as reflected in higher long term interest rates and a stronger USD. This could restrain how much further US long term rates rise from here.”