US interest rate hike will come in December
30 October 2015 New York
Image: Shutterstock
The first US interest rate hike is expected in December, according to the Securities Industry and Financial Markets Association’s (SIFMA) Quarterly Issuance Survey results.
The survey saw 80 percent of respondents predict the Federal Reserve will raise the target rate by the end of 2015.
The remaining 20 percent suggested March 2016 was a more likely date.
Total net treasury bill, note, and bond issuance are expected to hit $166 billion in Q4 2015, according to the survey.
The target will represent 24.9 percent growth on the $132.9 billion issued in Q3 2015.
SIFMA’s forecast for the Q4 issuance of net marketable debt is much lower than the Treasury’s August debt issuance $270 billion estimate.
When asked about main risks on the downside (lower-than-expected yields), responses included US and global economic deterioration, strengthening US dollar, and persisting low oil prices.
The survey saw 80 percent of respondents predict the Federal Reserve will raise the target rate by the end of 2015.
The remaining 20 percent suggested March 2016 was a more likely date.
Total net treasury bill, note, and bond issuance are expected to hit $166 billion in Q4 2015, according to the survey.
The target will represent 24.9 percent growth on the $132.9 billion issued in Q3 2015.
SIFMA’s forecast for the Q4 issuance of net marketable debt is much lower than the Treasury’s August debt issuance $270 billion estimate.
When asked about main risks on the downside (lower-than-expected yields), responses included US and global economic deterioration, strengthening US dollar, and persisting low oil prices.
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