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ChiNext data shows traders have balanced their bets between a 50 bps and 25 bps rate cut in the last few hours

ChiNext data shows traders have balanced their bets between a 50 bps and 25 bps rate cut in the last few hours

Bitget2024/09/18 17:38

As the Federal Reserve's interest rate decision approaches, the outcome is looking more uncertain. According to data from the Chicago Mercantile Exchange (CME), traders have been betting more evenly between a 50-basis-point rate cut, which currently has a probability of about 55 per cent, and a 25-basis-point cut, which has a 45 per cent likelihood, over the past few hours. Earlier on Wednesday, a 50 bps cut was still favoured by a 2:1 probability margin, but the more conservative option of a 25 bps cut gained more support due to strong economic data. US bond yields are rising as the likelihood of a significant rate cut diminishes. The yield on the two-year US bond is currently at 3.657 per cent, compared to 3.59 per cent at Tuesday's close.

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