Hawkish Fed minutes leads to renewed sell-off in Treasuries

Dollar jumps to 13-year high

Natalie Kenway
clock • 1 min read

The odds of a December rate hike in the US increased to more than 90% yesterday, leading the US dollar to surge to a 13-year high against major currencies and a renewed sell-off in Treasuries.

Minutes from the Fed's November meeting said it would be appropriate to raise rates "relatively soon" reinforcing the case for a rate hike next month. A tool created by CME Group named FedWatch started to predict a 100.2% chance of a December increase in rates, but this was soon to be found as a glitch and odds were corrected to 93.5%, with a 0.25bp rise expected. As a result of the hawkish tone of the Federal Open Market Committee, the US dollar surged to its highest level since March 2003. Reuters reported the dollar index rose 0.6% to 101.67, after earlier soaring to an almost 14-y...

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