The Federal Reserve’s interest-rate hike is likely to increase the stock of short-term Treasury bonds by as much as 10 basis points, a survey of financial professionals said Wednesday.
The survey of nearly 1,000 senior financial professionals by the Federal Reserve Bank of New York and the National Association of Securities Dealers found that the Fed will likely raise rates to a range of 0.25 to 0.50 percent from a range ranging from 0.15 percent to 0,25 percent.
The Fed said last week it expects inflation to slow to a 2.1 percent annual rate in 2017.
The Fed’s rate hike, which comes after months of steady increases, comes as the U.S. economy slows, which could hurt bond investors.
The Federal Open Market Committee is expected to vote on the Fed’s next policy statement Thursday, and the committee is expected next to take up the matter of raising the federal funds rate.