[Bond Traders Bet the Fed's Next Move Will Be a Rate Hike, Not a Cut] Jin10 News, May 6 – Bond traders are increasingly betting that the Federal Reserve's next policy move is likely to be a rate hike rather than a cut. Swap contracts tied to central bank rate decisions currently indicate that the market expects the probability of a rate hike before April next year to exceed 50% before any rate cuts occur. More and more traders are also increasing their positions to hedge against the rising risk of a rate hike before the end of the year. This shift in market sentiment comes as policymakers appear increasingly divided on the outlook for interest rates. Lawrence Gillum, Chief Fixed Income Strategist at LPL Financial, believes that the possibility of a rate cut this year still exists, but as the Iran conflict drags on, this likelihood will gradually diminish. He stated: 'Without a doubt, the path forward for Walsh will be fraught with challenges.'