CBOT Financial Markets Expected To Respond To Federal Reserve Open Market Committee Meeting, 12:30 P.M. Tuesday - Fed Funds January 2001 Futures Currently Pricing In A 24 Percent Chance Of An Interest-Rate Drop - 76 Percent Probability Of No Change

The Chicago Board of Trade’s U.S. Treasury and Stock Index futures markets—especially the CBOT®’s Fed Funds futures contract—are positioned to absorb investor reaction to the decisions resulting from the Federal Reserve Board meeting on Monday and Tuesday, December 18 and 19.

Due to the risk-management demands of market users, pit trading in the CBOT®’s U.S. Treasury Bond complex and DowSMJones Industrial Average futures and options contracts are the premier markets to gauge the temperature of the U.S. economy.

Currently, the CBOT®’s Fed Funds January 2001 futures contract is pricing in a 24 percent chance that the Federal Reserve Board will lower the Fed Funds rate 25-basis points this coming Wednesday, with a 76 percent probability of no change.

The CBOT® U.S. Treasury Bond complex and DowSMJones Industrial Average futures trade from 7:20 a.m. to 2:00 p.m. and 3:15 p.m. (CT), respectively.

For more details on live or taped coverage of CBOT® financial and stock index futures markets, contact Laura LaBarbera at +1 312-435-3649.