BlockBeats reports that on August 13, investors boosted exposures in swap contracts, options, and long US bonds, reflecting heightened expectations of a significant rate cut as inflation eases.
BlockBeats reported on August 13 that investors increased positions in swap contracts, options, and long US bonds, betting on a Fed rate cut in the coming months. Following July's inflation data, short-term US bond yields dropped, pushing traders to price in a 90% chance of a September rate cut, with potential cuts exceeding 25 basis points. Additionally, around $2 million in premiums was added on SOFR-linked positions, and analysts from BlackRock and Goldman Sachs noted a credible case for a 50 basis point cut.