The market is beginning to anticipate a 50BP rate cut by the Federal Reserve in September.

Odaily Star Daily News According to concerns about the US economic recession, the market has increased its bet on the Fed’s interest rate cut. The yield on the US 2-year Treasury bond continued to fall overnight and fell to 4.11% in the early morning of the Asian market, the lowest level since May 2023. As of the time of publication, Interest Rate futures show that the market prices the Fed to cut interest rates by 87BP within the year, and the bet on four interest rate cuts within the year is still 13BP away. The Fed still has three meeting windows to cut interest rates this year, and the probability of a 50BP rate cut in September has risen to 33%. (Jinshi)