The Federal Reserve is expected to cut interest rates this week. The question is whether the bond market has fully priced in the start of policy easing?

Continue reading →

A busy week of central bank decisions awaits in the days ahead, including the Federal Reserve’s expected announcement of a rate cut on Wed., Sep. 18. Central banks in Brazil, England, Norway and South Africa are also set to hold policy meetings this week. “We’re entering a cutting phase,” says John Bilton, global head of multi-asset strategy at JP Morgan Asset Management.
The US 10-year Treasury yield closed last week at 3.66%, near the lowest level since June 2023. The recent slide in the benchmark rate comes amid the consensus view that the Federal Reserve will cut interest rates on Wednesday (Sep. 18). Fed funds futures are estimating a coin toss between a 1/4-point vs. a 1/2-point reduction in the target rate.

Continue reading →