The expectation of a 50 basis point rate cut is gaining momentum in the bond market, surpassing the expectation of a 25 basis point cut.
Updated on September 16, 2024, 22:34 JST (excerpt).
There is still a possibility that the FOMC has not reached a consensus - Rabobank.
There is a possibility that the US retail revenue announced on the 17th could become a turbulent factor.
In the Federal Open Market Committee (FOMC) meeting expected this week, the bond market is seeing a resurgence in the forecast of a 50bp interest rate cut, suppressing the prediction of 25 basis points (bp, 1 bp = 0.01%).
Swaps trades associated with the FOMC decision revealed on the 18th showed that the probability of a 50bp interest rate cut had exceeded 50%. This possibility had been virtually ruled out just one week ago. The 2-year bond yield temporarily dropped to its lowest level in two years, and the dollar index also fell to its lowest point since January.
There is still a possibility that the FOMC has not reached a consensus - Rabobank.
There is a possibility that the US retail revenue announced on the 17th could become a turbulent factor.
In the Federal Open Market Committee (FOMC) meeting expected this week, the bond market is seeing a resurgence in the forecast of a 50bp interest rate cut, suppressing the prediction of 25 basis points (bp, 1 bp = 0.01%).
Swaps trades associated with the FOMC decision revealed on the 18th showed that the probability of a 50bp interest rate cut had exceeded 50%. This possibility had been virtually ruled out just one week ago. The 2-year bond yield temporarily dropped to its lowest level in two years, and the dollar index also fell to its lowest point since January.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
