Reported 6 months ago
Bond traders are increasingly betting on a faster pace of Federal Reserve interest-rate cuts as Treasuries rally. Yields have declined, and expectations for the Fed's first 25 basis-point rate cut have been moved up. Traders have been targeting protection against a faster rate cut pace, with some hedging linked to the central bank's policy path indicated through the Secured Overnight Financing Rate options, showcasing a shift from previously anticipated rate hike scenarios.
Source: YAHOO