Bets with huge profits and low win rates by betting on FRB big interest rate cuts suddenly pay off
2024/8/6 14:23 JST (some excerpts)
Positions where interest rates are expected to be cut by 0.5 points in September are in the money
FF interest rate futures were active in trading for the 10 month period, and recorded a record high of about 0.4 million shares on the 2nd
In July, traders who bet on large-scale interest rate cuts by the US Federal Reserve (FRB) got huge profits. As of July, it seemed like a bet with a low win rate, but the market suddenly moved in the direction expected.
Positions where interest rates are expected to be cut by 0.5 points in September are in the money
FF interest rate futures were active in trading for the 10 month period, and recorded a record high of about 0.4 million shares on the 2nd
In July, traders who bet on large-scale interest rate cuts by the US Federal Reserve (FRB) got huge profits. As of July, it seemed like a bet with a low win rate, but the market suddenly moved in the direction expected.
Views are spreading in the market that interest rates will be cut by 0.5 points at the next US Federal Open Market Committee (FOMC) meeting to be held in September. Some movements in Federal Fund (FF) interest rate futures indicate that there are even observations of emergency interest rate cuts before the next meeting.
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