Fed funds futures now point to best chance of rate hike in October (was September)

Fed funds futures are now pointing to the best chance of the first U.S. interest rate hike being in October, as dovish comments by Fed Chair Janet Yellen lowered expectations.

Futures now assign a 48 percent probability to a rate hike in September and a 69 percent probability for October, according to CME Group data.

The odds for a September hike were 54 percent on Tuesday morning, before Yellen started delivering her semiannual prepared remarks to the U.S. Senate.

The odds of a September hike had been as high as 63 percent last week, before the release of Fed minutes that made clear the central bank's cautious approach to the so-called liftoff of rates.

For coverage of Yellen's testimony click here.