“Two of Wall Street’s largest banks, Goldman Sachs Group Inc. and Citigroup Inc., are recommending bets against a super-sized rate hike from the Federal Reserve in March.” Writes Edward Bolingbroke at Bloomberg…
Speculation surged Friday at the jobs report on Friday which resulted in the swaps markets giving roughly 50% odds to a 50 basis point increase in March.
Analysts from both Goldman and Citigroup disagree with this move. They said they see “such an aggressive move as unlikely and are suggesting trades that would benefit from a more traditional quarter-point jump.”