traders see a 73 likelihood that the fed funds rate will rise to between 5 and 525 by may following januarys unexpectedly strong nonfarm payrolls report up from a 60 chance on friday the revised expectations on monday came as tbill rates marched higher the 1year bill rate tmubmusd01y rose 8 basis points to 49 as of monday morning the fed funds rate currently sits between 45 and 475 and traders are factoring in a 97 chance of another 25basispoint hike in march