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Cautious bond traders race to reset Fed rate bets
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- Cautious bond traders race to reset Fed rate bets Mary Helen Gillespie Fri, May 8, 2026 at 12:07 AM GMT+7 5 min read Bond traders are rapidly reshaping their outlook on U.S.
- Bloomberg reported that swaps linked to central bank rate decisions are currently pricing more than a 50% chance that the Fed raises rates by next April, before easing.
- A growing chorus of traders is also ramping up positions looking to hedge the prospect of rate-hike odds rising by the end of the year.
Cautious bond traders race to reset Fed rate bets Mary Helen Gillespie Fri, May 8, 2026 at 12:07 AM GMT+7 5 min read Bond traders are rapidly reshaping their outlook on U.S. monetary policy, increasing bets that the Federal Reservecould raise interest rates before cutting them as persistent inflation risks and geopolitical tensions upend dovish expectations.
Bloomberg reported that swaps linked to central bank rate decisions are currently pricing more than a 50% chance that the Fed raises rates by next April, before easing.
A growing chorus of traders is also ramping up positions looking to hedge the prospect of rate-hike odds rising by the end of the year.
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