Prime Rate Up to 6% Mid 2005 IMTO
[NCC] NATIONAL CITY UPS PRIME RATE TO 5% FROM 4.75%
[MTB] M&T BANK RAISES PRIME RATE 0.25 POINTS TO 5%
[$TNX] 10-YEAR TREASURY NOTE -3/32 AT 100 2/32; YIELD 4.24%
Fed funds futures unchanged, see 80% odds for Dec. hike
By Rachel Koning
CHICAGO (CBS.MW) -- Short-term interest-rate futures contracts traded on the Chicago Board of Trade were little changed in the wake of the Federal Reserve's latest quarter-point rate hike and statement. The market is still telegraphing 80 percent odds the U.S. central bank will raise its target lending rate to 2.25 percent at its Dec. 14 meeting, roughly the same odds priced in since a strong October payrolls report. The futures markets see about a 69 percent chance the target moves to 2.50 percent at the Fed's Feb. 2 meeting, the same odds priced in earlier Wednesday. The futures market predicts a pause in March but puts strong odds on another hike after that, bringing the target rate to 2.75 percent by June