(Reuters) – U.S. short-term interest rate futures dropped on Friday after a U.S. government report showed October job gains were stronger than expected, giving traders more confidence the Federal Reserve will keep borrowing costs where they are for now.
Traders had already priced in a pause in rate cuts until next March, after the Fed cut its benchmark target earlier this week by a quarter of a percentage point to a range of 1.5% to 1.75% and signaled that only a turn for the worse could move them to ease policy more.
After the report, which showed U.S. employers hired 128,000 last month, bets rose that June would be the first likely chance of any further rate cut, based on futures contracts traded at CME Group.
Reporting by Ann Saphir; Editing by Chizu Nomiyama/Mark Heinrich
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