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A ‘Meaningful Minority’ Now Expects The Fed Will Cut Rates To Zero
Markets are convinced the Fed is set to cut rates in July (and Jerome Powell of course confirmed as much on Capitol Hill last week), but what comes after that is anyone's guess.
While many on Wall Street see a series of 25bp cuts (in July, September and December), market participants aren't sure what to think. When BofA asked 62 fund managers with $792 billion in AUM how many Fed cuts they expected by the of 2021, the results were all over the place.
"The average of ca. 100 bp of cuts priced i
If this is the case, whay aren’t Treasuries rallying on this sentiment? A 100bp cut over the year would make current 10 yrs for example yield monsters.