Traders see below 50 percent of U.S. rate hike by year-end

NEW YORK U.S. interest rates futures fell on Friday but traders still saw less than a 50 percent probability the Federal Reserve would raise interest policy rates by year-end amid concerns about the global economy and possible stimuli from overseas central banks.

The federal funds contract for December delivery was down half a basis point at 99.520. It implied traders priced in about 48 percent chance of a rate increase at the Fed’s last meeting in 2016, compared with 47 percent on Thursday and 43 percent a week earlier, according to CME Group’s FedWatch program.

(Reporting by Richard Leong Editing by W Simon)