(Bloomberg) -- Traders further downgraded the odds of any further rate increases by the Federal Reserve and ramped up bets on rate cuts beginning in June.

Swap contracts referencing Fed meeting dates repriced to levels consistent with the US central bank leaving its policy rate unchanged in May. The Friday move comes two days after the central bank’s ninth straight rate increase, to a range of 4.75% to 5%.

Earlier Friday, the contracts briefly fully priced in a quarter-point rate cut in June. They continue to anticipate cuts totaling more than a percentage point by year-end.


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