(Bloomberg) -- After being caught complacent by Federal Reserve speakers this week, futures traders are scrambling to guard against an interest-rate increase by the central bank in two weeks. Volumes surged across Fed Funds futures as traders position themselves for a steeper path of tightening this year. A combined record 438,000 contacts traded in April and May Fed Funds as odds for March jumped from about 50 percent two days ago to 68 percent, based on the forward OIS rate for the March 14-15 policy meeting.
To contact the reporter on this story: Edward Bolingbroke in New York at ebolingbrok1@bloomberg.net.
To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net, Dave Liedtka, Sophie Caronello
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