Traders Reach Crucial Moment in Timing of Fed Rate-Hike Cycle

Eurodollar contract hovers near key level ahead of April FOMC
Fresh catalysts needed to again jolt expectations for rates

A vehicle passes the Marriner S. Eccles Federal Reserve building in Washington, D.C.Photographer: Stefani Reynolds/Bloomberg

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By Vivien Lou Chen and Edward Bolingbroke

April 24, 2021 at 6:37 PM UTC

This article is for subscribers only.

For rates traders fixated on where the Federal Reserve is going with policy in the next few years, a key number is 99.

That’s basically the price where eurodollar futures expiring in December 2023 have been stuck for more than a week. And that means markets have calmed significantly since the feverish early-April bets that policy makers were going to get dragged into a more hawkish stance.