CME Group has reported its October 2021 market statistics, showing average daily volume (ADV) increased 32 per cent to 20.4 million contracts during the month. 

Erik Norland, Senior Economist, CME Group, says: “Amid continued supply chain disruptions, rising inflation and continued labour shortages, the past month we have seen a sharp change in investor expectations regarding future rate hikes in both the UK and the US.  

In the UK investors now anticipate a BoE rate hike as soon as 4 November. Meanwhile, in the US, market participants trading Fed Funds Futures anticipate that the Fed could hike rates one or two times in the next twelve months according to CME’s FedWatch tool. 

"Previously, investors did not anticipate any Fed rate hikes until 12-24 months in the future. By contrast, few expect that the ECB will hike rates soon, although there is an expectation that they will gradually bring their policy rate back towards zero over the next several years. While short-term expectations for the ECB have not changed a great deal, longer-term Eurozone bond yields followed Gilt and Treasury yields higher while still remaining significantly lower than their peers.”