The 30-Day Federal Funds futures contract allows market participants to express views on the average overnight federal funds rate for a given calendar month. The federal funds rate is the interest rate at which U.S. banks lend reserve balances to each other overnight, and it is the primary tool of Federal Reserve monetary policy. The contract is priced as 100 minus the expected average fed funds rate for the delivery month, so a price of 95.96 implies an expected average rate of approximately 4.04%. These futures are widely used to gauge market-implied probabilities of Federal Reserve rate changes.
السياق السوقي
The 30-Day Fed Fund futures contract is at 96.255, slipping less than 0.01% on the day and about 0.02% over the past week. The contract is marginally higher over the past month and is nearly flat year-to-date, while posting a modest gain of roughly 0.39% compared to one year ago.