Traders pulled back on their expectations for a full percentage point of rate cuts by year-end, after reports that a number of large banks are in talks to shore up First Republic Bank. Fed funds futures traders now see a 54.2% chance that the Federal Reserve will drop its main interest-rate target to between 4.25% and 4.5% by December, implying just a quarter-point of rate cuts relative to the current range of 4.5%-4.75%. The odds of a quarter-point move next Wednesday shot up to 84.4%, from 54.6% on Wednesday, according to the CME FedWatch Tool, as 6-month through 30-year Treasury yields all moved higher.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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