Latest news with #bondtraders
Bloomberg
6 days ago
- Business
- Bloomberg
Bets on Fed Rate Cuts Are Sweeping Through the US Bond Market
Bond traders are ramping up bets on the Federal Reserve cutting interest rates this year, as signs of a weakening US economy bolster the case for the central bank to reduce borrowing costs as demanded by President Donald Trump. Positioning in options tied to the Secured Overnight Financing Rate, which closely tracks the expected trajectory of US monetary policy, shows investors readying for the possibility of cuts in each of the three remaining meetings this year, bringing down rates by a total of 75 basis points in 2025. Other plays on SOFR have included bets on a 50 basis-point cut at the central bank's next meeting, in September.
Bloomberg
31-07-2025
- Business
- Bloomberg
US Bond Traders Eye Inflation for Steer on September Rate Cut
US bond traders will scour inflation data due Thursday for signs of persistent price pressures that could encourage the Federal Reserve to keep borrowing costs higher for longer. Treasuries clawed back some of the losses suffered Wednesday after the central bank held rates steady and Fed Chair Jerome Powell indicated that he may keep investors waiting for the first reduction in borrowing costs this year. Money markets slashed wagers on a September rate cut to 40% from 80%.
Bloomberg
01-07-2025
- Business
- Bloomberg
Mounting Bets on Extended US Bond Rally Face Jobs-Data Reckoning
Bond traders who rapidly built up long Treasuries positions in recent weeks are counting on Thursday's jobs report to give the market rally more room to run. June's payrolls report, the next major risk event for the bond bulls, is set for release just one day before the Fourth of July holiday. Bullish bond investors have already faced a mini-gut check after Tuesday's JOLTS job openings report showed an unexpected, steep increase for May — a sign of labor market strength that ignited a bond market selloff.
