According to BlockBeats, bond traders are increasingly betting on a 50 basis point rate cut by the Federal Reserve in September, rather than the standard 25 basis points. Marilyn Watson, Head of Global Fundamental Fixed Income Strategy at BlackRock, indicated that the Fed is likely to reduce rates in September but also suggested that action could be taken as early as July. Data from CME Group Inc. shows that last Thursday's futures trading volume reached nearly 260,000 contracts, setting a record for October contracts. Buying interest remained high on Friday, with higher-priced purchases indicating a growing belief that the Fed might initiate its first easing cycle in years with a substantial move.

Last week, Federal Reserve officials were perceived to have given their strongest signal yet of an impending rate cut. During public appearances, including two congressional testimonies by Fed Chair Jerome Powell, officials displayed newfound confidence when discussing their control over inflation and readiness to shift policy. Pimco economist Tiffany Wilding stated that following last week's data releases, a rate cut in September is now a certainty.