US rate futures raise easing bets for July, fully prices in September cut

NEW YORK (Reuters) -Futures on the federal funds rate on Wednesday lifted the chances of a rate cut by the July policy meting after a much weaker-than-expected private sector jobs report for June.

Data showed private sector jobs unexpectedly fell by 33,000 last month.

Fed funds futures priced in as much as a 27% chance of a July cut post jobs data, according to LSEG estimates. It was last at 23%, compared with a roughly 20% just before the data release. For the September meeting, the market has fully priced in a 25 basis-point rate decline.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrew Heavens)