US traders shift from betting on Fed rate cuts to hedging for possible rate hikes in 2024.
US traders are betting against Fed rate cuts this year as the economy shows resilience and inflation progress stalls. They're hedging bets for possible rate hikes in 2024, contrasting with swaps showing 40 basis points of cuts by year-end. This shift in expectations is affecting financial instruments used for hedging, with asset managers increasing net longs in 2- and 5-year note futures.
April 23, 2024
3 Articles