[Traders bet that the ECB will follow the Fed in cutting rates by 50 basis points] Golden Finance reported that the money market has increased its bets that the Federal Reserve will ease monetary policy with a force far greater than policymakers expected. Soon after, the market also increased its bets that the European Central Bank will follow the Fed in cutting interest rates. Traders currently believe that there is a 60% chance that the ECB will cut interest rates by 50 basis points in September, having fully digested the expectation that the Federal Reserve will cut interest rates by 50 basis points in September. At the same time, the probability of a 25 basis point rate cut by the Bank of England is rising. These bets are likely to continue, increasing safe-haven buying of bonds at a time when the market generally flees risky assets.