Traders scaled back their expectations for aggressive interest-rate cuts by the Federal Reserve following the release of the latest University of Michigan surveys of consumer sentiment. The surveys indicated a decline in confidence and inflation expectations towards the end of March and the beginning of April.

Despite the decreased certainty, prices of interest-rate futures still suggest that the U.S. central bank might commence reducing its policy rate in June, with the market indicating a probability of around 75%, down from over 80% earlier in the day. Traders are anticipating a total of three rate cuts by the Fed throughout the year, a shift from previous expectations of a fourth rate cut.

The information was reported by Ann Saphir and edited by William Maclean.