Bond traders are making a significant bet on the Federal Reserve's interest-rate path, anticipating 300 basis points of cuts by March 2025. This wager, seen in the US rates options market, suggests traders expect the policy rate to drop to as low as 2.25%. The Federal Reserve, however, has forecasted just one quarter-point cut this year. The bold prediction, reported by Bloomberg, spans the next nine months.
Bond Traders Boldly Bet on 300 Basis Points of Fed Cuts by March - BBG https://t.co/OVNvjXUA8H
Bond Traders Bet on 300 Basis Points of Fed Cuts by March 2025 Standout play in options targets policy rate as low as 2.25% (LOL) Meanwhile, Fed officials forecast just one quarter-point cut this year. https://t.co/qg4M4iZRDK https://t.co/eIXQcwymC5
Bond traders boldly bet on 300 bps of Fed cuts by March https://t.co/1o8BITKKzM