Interest Rate Options
Posted: Tue Sep 20, 2022 2:27 am
Found a very interesting website that tracks the options market for the federal reserve interbank rate.
https://www.cmegroup.com/trading/intere ... -fomc.html [probability tab on left hand side]
Some interesting take aways are fed fund rate is predicted to peak at 4.25- 4.75% by 12/14/2022 and will stay in effect around that range until dropping again by 9/20/2023.
Keep in mind these options are quite volatile and simple things like a CPI report can drastically change the market [historical tab on left hand side]
I would not be surprised to see intermediate and maybe even long term bonds hitting 5% by end of year, might be a good opportunity to lock in some solid long term performers as long as you are not a hyperinflation enthusiast
https://www.cmegroup.com/trading/intere ... -fomc.html [probability tab on left hand side]
Some interesting take aways are fed fund rate is predicted to peak at 4.25- 4.75% by 12/14/2022 and will stay in effect around that range until dropping again by 9/20/2023.
Keep in mind these options are quite volatile and simple things like a CPI report can drastically change the market [historical tab on left hand side]
I would not be surprised to see intermediate and maybe even long term bonds hitting 5% by end of year, might be a good opportunity to lock in some solid long term performers as long as you are not a hyperinflation enthusiast