Bond traders are terrible at timing Fed rate hikes
In late 2008, amid the financial crisis, traders expected several Fed hikes in the following couple of years, but central bank officials didn't tighten until 2015.
A word of warning for all those bond traders banking on a Federal Reserve rate hike as soon as next year: Since 2008, markets have underestimated how patient officials can be in lifting borrowing costs from zero.
After the Fed first slashed rates that low during the financial crisis, hedgers and
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