Traders keep bets on Fed rate hike in December after jobs report

U.S. short-term interest rate futures fell slightly on Friday after a government report showed the U.S. jobs market weakened in a hurricane-heavy September, though the drop was not enough to signal traders are backing away from expectations the Federal Reserve will raise interest rates in December.

Traders continue to give about a 75 percent chance the Fed will raise rates in two months time, and about even odds of another rate hike next June, based on a Reuters analysis of Fed funds futures traded at CME Group Inc’s Chicago Board of Trade.
Source: Reuters (Reporting by Ann Saphir)