ChainCatcher news, according to Cailian Press, bond traders are increasing their bets that the Federal Reserve will cut interest rates by 50 basis points in September, rather than betting on the standard September 25 basis point rate cut. This is fully reflected in the federal funds futures market.
Weaker-than-expected inflation data released on Thursday triggered a buying spree in October, and the momentum continued on Friday. Contracts expiring on October 31 have fully digested policymakers' expectations of a 25 basis point rate cut at the September 18 meeting. Any buying at higher price levels means that more people are expected to believe that the Federal Reserve may start the first easing cycle in many years with a "big hand".