Latest news with #moneymarkets
Bloomberg
16 hours ago
- 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
18 hours ago
- Business
- Bloomberg
Traders Trim ECB Easing Bets, Favor No More Rate Cuts This Year
Money markets are adding to bets that the European Central Bank will hold interest rates at 2% through to year-end. Traders cut bets on a final quarter-point rate cut this year on Thursday, with swaps implying a less than 50% chance of a move. A decrease was fully-priced as recently as the start of last week.
Bloomberg
2 days ago
- Business
- Bloomberg
Treasuries Steady Ahead of Federal Reserve, Refunding Outcomes
Treasuries broadly held on to the prior day's strong gains ahead of the Federal Reserve's monetary-policy outcome and a closely-watched quarterly refunding announcement. Yields on US 10-year debt edged one basis point higher to 4.33%, following the biggest slump in eight weeks on Tuesday. Money markets and economists surveyed by Bloomberg expect the Fed to keep interest rates in a 4.25% to 4.5% range, while swaps imply 15 basis points of easing in September and 45 basis points by year-end.
Bloomberg
24-07-2025
- Business
- Bloomberg
Traders Pare Bets on ECB Cutting Rates One More Time This Year
Traders trimmed wagers on the European Central Bank delivering another interest-rate reduction by the end of the year, after President Christine Lagarde indicated officials have scope to pause their cutting cycle. Money markets now show a 75% probability of a quarter-point cut, compared with about 90% before Thursday's monetary policy decision. The ECB kept interest rates unchanged for the first time in more than a year as predicted by a majority of economists.
Bloomberg
17-07-2025
- Business
- Bloomberg
Traders Bet on Deeper BOE Cuts, Brushing Aside Inflation Fears
Some traders have placed wagers in the UK options market that could net a more than 1,000% return if the Bank of England ignores inflation at an eighteen month high and delivers more cuts this year than rates pricing suggests. The bets were initiated on Thursday by purchasing option strategies tied to the Sterling Overnight Index Average rate — a proxy for policy rates. They'll pay out out almost £20 million ($26.8 million) on initial outlays of around £1.5 million if the benchmark rate falls to 3.5% this year — a quarter point more than money markets are currently implying.
