NEW YORK (Reuters) - U.S. interest rates futures fell on Wednesday to their lowest in more than three weeks, hinting renewed expectations the Federal Reserve may raise interest rates by the end of the year.
On June 24, when it became clear a majority of British voters favored exiting the European Union, a move known as Brexit, traders grew anxious about the repercussion on the British and European economies.
They also tried to assess whether the U.S. central bank would postpone a possible rate increase this year in a bid to protect the U.S. economic expansion.
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Since their sharp rise immediately after the Brexit referendum, federal funds futures and U.S. Treasury prices have fallen on diminished fears of a sudden global economic slowdown.
Fed funds for December <FFZ6> fell 2 basis points to 99.515. They implied traders saw almost a 51 percent chance the Fed may raise its policy rate at its Dec. 13-14 policy meeting, according to CME Group's FedWatch program.
This compared with a 47 percent perceived probability of a December rate increase on Tuesday and no chance seen right after the June 23 Brexit vote.
(Reporting by Richard Leong; Editing by James Dalgleish)