Time:2024-12-19 Click:882
According to BlockBeats, on December 19, some bond traders have been increasing their bets on options and futures, anticipating that the Federal Reserve might signal a larger rate cut next year than the market currently expects. Ahead of the Federal Reserve's policy decision announcement, U.S. Treasury bonds saw a modest rise on Wednesday.
With a 25 basis point rate cut by the Federal Reserve largely seen as a certainty, the market's focus has shifted to the Fed's latest quarterly projections. The dot plot released in September indicated that officials anticipated a total rate cut of 100 basis points over the next two years.
However, given the persistent nature of inflation data, the broader market is betting that the Federal Reserve will lower its forecast for rate cuts next year. Swap rates suggest that the Fed might only reduce rates by 50 basis points in the coming year.
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