Traders see higher chances of U.S. rate hikes after data

NEW YORK (Reuters) - Surprisingly strong data on U.S. retail sales in October raised traders' expectations the Federal Reserve would raise short-term U.S. interest rates at its Dec. 13-14 policy meeting, according to the interest rate futures market on Tuesday.

Federal funds futures for December delivery implied traders saw about a 91 percent chance the U.S. central bank would increase the target range on its policy rate by a quarter point to 0.50-0.75 percent next month, up from 86 percent late on Monday, CME Group's FedWatch program showed at 8:55 ET (1355 GMT).

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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