The Odds of a September Rate Hike Have Surged in the Last Two Days

Traders have never been more convinced of a September rate hike by the Federal Reserve. The chances of an interest-rate increase next month reached 52 percent Wednesday, up from just 38 percent just two days earlier. What's fueled the change of heart? Hawkish comments from Fed Bank of Atlanta President Dennis Lockhart on Tuesday, and a surprisingly strong report on U.S. service-sector growth Wednesday morning. That's helped drive bond yields higher before the week's main event, Friday's monthly report on unemployment and wages from the Labor Department. Fed officials have said that they will need signs of some further improvement in the jobs market before they raise rates. To read more click (VIEW LINK)