Wagers on rates remaining higher for longer have crept upward most of the year and are now nearing their highest levels since 2013. Ahead of the Federal Reserve’s next decision on Wednesday, derivatives markets show the federal-funds rate sitting at around 3.5% for the long run. That is a full percentage point higher than the central bank’s own latest forecast. Those wagers have crept higher throughout most of the year, and are now nearing levels not seen since the 2013 bond-market rout known as the “Taper Tantrum.”
Source: WSJ.com: Markets
