Fed funds futures are now not pricing in the next rate hike until June, according to CME's closely watched FedWatch tool.
Previously, the implied odds favored a hike in March.
The odds for a hike in June now stand at 65 percent, the first time they are better than 50-50.
Separately, RBS said the market is pricing in one hike this year and a 70 percent chance of a second hike, down from two full hikes earlier in the week. This is based on RBS interpretation of overnight index swaps data.