- The Fed has strongly hinted of its plan to raise rates at every other meeting this year - meaning a total of four hikes, with the next coming at the March meeting.
- Market participants haven't been buying that line, instead pricing in just two rate hikes this year - a move not unnoticed by the PhDs at the Fed who insist the markets aren't getting things right.
- Mulling over another sharp decline in stocks and another weak batch of economic data, investors are doubling down on their dovish bets, now not pricing in another Fed rate hike until September.
- The January 2017 Fed Funds futures contract is now priced at 99.335, implying a Fed Funds rate one year from roughly only 33 basis points higher than it is today.
- ETFs: SHY, IEF, PST, IEI, BIL, TYO, DTYS, UST, VGSH, SHV, VGIT, SCHO, TBX, SCHR, GSY, TYD, ITE, DTYL, DTUS, DTUL, SST, TUZ, DFVL, TBZ, DFVS, TYNS