Sharp Fed Cuts Could Arrive Sooner than Many Expect
Dow Jones10-23 22:59
The probability of sharp interest rate cuts by the Fed next year has increased in derivative markets, according to Barclays research.
Investors are increasingly paying up for protection against steep Fed rate cuts rather than rate hikes, the bank's analysts say in a note. Despite the Fed's September hike, "the probability of policy rates being below 3% over the next year has actually increased since before the September FOMC."
Barclays expects short-term yields to fall faster than long-term ones as the Fed cuts.
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