Traders Maintain U.S. Rate-Hike Perspective Following Data, According to Reuters

NEW YORK (Reuters) – U.S. federal funds futures remained near five-week lows on Wednesday following a sharper-than-expected 4 percent decline in durable goods orders for June, which raised new concerns about the manufacturing sector.

The fed funds contract for December delivery dipped half a basis point to 99.510. This indicated that traders perceived a 55 percent likelihood that the U.S. central bank would increase interest rates by the end of the year, up from a 52 percent probability the previous day, according to data from CME Group’s FedWatch.