Header and navigation menu

Page content

Bond Traders bet on aggressive Fed Cuts

Bond traders are increasingly betting on the Federal Reserve implementing at least one half-point interest-rate cut during the remaining three policy meetings this year. While current projections anticipate officials lowering borrowing costs on Wednesday (Thursday AEST) for the first time in 2025, with a quarter-point reduction considered the most probable, a weakening labour market is prompting some traders to hedge against the possibility of a deteriorating economic outlook leading to more substantial moves. [...]