Reported 21 days ago
Traders are facing potential losses on their record wagers anticipating a significant Federal Reserve interest-rate cut if officials opt for a smaller reduction. As speculation rises about the size of the forthcoming cut, the sentiment has shifted notably, with the market now pricing a greater likelihood for a half-point reduction, instead of the previously expected quarter-point. This heightened positioning in the futures market signals vulnerability should the Fed opt for a smaller cut, leading to sharp reactions in U.S. Treasury yields.
Source: YAHOO