Futures on interest rates in the US reached its highest level since the autumn of last year, as the widespread sale of shares as well as the purchase of government bonds actively supported expectations that the central bank will soon come to the fact that interest rates will need to be reduced.
According to the current situation on the federal funds futures market, bidders are laying now two cost reduction regulator of interest rates this year.
It is predicted that the first cut in interest rates this year will be held at a meeting in June. The probability is estimated at 80%. So, most likely, the base lending controller overnight rate will be at least below 0.25%. To date, the index is at the level of 1.50-1.75% after last year's interest rate was reduced three times.
These steps were taken after Italy, South Korea and Iran have reported a significant increase in the number of coronaviruses infections.