Odds on a 50 basis point cut from the Federal Reserve at its November 7 meeting plunged to 0% Friday on the CME FedWatch tool after a strong jobs report for September showed a tick down in the unemployment rate.
On September 27, the CME FedWatch tool, which calculates the odds of a Fed move on interest rates from prices in the Fed Funds futures market, had put the odds of a 50 basis point cut at 53.3%. Today, the odds for a 50 basis point cut fell to 0% with 100% odds for a 25 basis point cut. (It takes 100 basis points to make up 1 percentage point.)
The bond market also responded to falling expectations for a 50 basis point cut. Prices for the 10-year Treasury fell and the yield rose 12 basis points to 3.97%
