Markets turn rudderless as traders revert to contemplating Fed rate risks
Markets are struggling to gain traction this morning as the US government shutdown ends and a hawkish repricing in Federal Reserve expectations continues. Treasury yields are holding near yesterday’s levels, equity futures point to a mixed open, and the broad dollar index is edging lower as traders conclude that any boost from Washington’s return to business has largely been absorbed in market pricing. USD: Market-implied odds on a rate cut at the Federal Reserve’s December meeting are down to just 53 percent after Boston’s Susan Collins—widely seen as a centrist on the central bank’s rate-setting committee—cautioned there is a “relatively...