Traders Cut ECB Rate-Hike Bets; October Move Odds Fall to 50%

Money markets have reduced bets on a European Central Bank rate hike next month, with the probability of a 25-basis-point increase now at 50%, down from about 70% previously. According to Sina Finance, swap markets now price in 36 basis points of hikes by year-end, compared with 38 basis points on Monday. The ECB raised its key deposit rate by 25 basis points to 2.5% last week, after which bets on further tightening briefly surged.