US bond market shifts focus to drastic interest rate cuts - room for further decline in the short-term zone
2024/7/17 10:54 JST (some excerpts)
The rise of dovish positions in derivatives over the past week
Long positions have been at a high level since January - JP Morgan US Treasury Client Survey
In the US bond futures and options market, there is a growing movement to bet on an earlier and drastic reduction in US interest rates.
Now that the so-called “Trump Trade” has begun, the interest of traders is shifting to the trend of the US financial authorities. In the option market linked to the secured next-day procurement interest rate (SOFR), new bets that anticipate drastic interest rate cuts in September on the 15th or the start of a relaxation cycle by the end of this month became mainstream.
The rise of dovish positions in derivatives over the past week
Long positions have been at a high level since January - JP Morgan US Treasury Client Survey
In the US bond futures and options market, there is a growing movement to bet on an earlier and drastic reduction in US interest rates.
Now that the so-called “Trump Trade” has begun, the interest of traders is shifting to the trend of the US financial authorities. In the option market linked to the secured next-day procurement interest rate (SOFR), new bets that anticipate drastic interest rate cuts in September on the 15th or the start of a relaxation cycle by the end of this month became mainstream.
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