Traders Less Certain about a Potential Fed Rate Cut in June
Tuesday, 2 April 2024, 10:27
Market Uncertainty Rising
The market pricing shows that the odds of a June move have decreased to around 62% now, down from approximately 68% at the end of last week.
If anything, it suggests we are looking at more of a coin flip ahead of the next big set of data points in the next two weeks.
Bond Traders Reacting
Bond traders are starting to act up, with 10-year yields now up 2 bps today to 4.349% and nearing the recent 4.35% ceiling.
- Probability of a 25 bps rate cut paired with just approximately 56% now.
- Technical levels being tested indicate potential market shifts.
If the key level breaks, traders are expected to intensify their focus on the developments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.