Traders begin to bet big on a rate cut in November, or another 50 basis points

After weaker-than-expected U.S. consumer confidence data released on Tuesday, investors are more inclined to cut interest rates by another 50 basis points in the November 7 resolution.

The Fed is expected to cut interest rates by a total of about 75 basis points in the remaining two rate cuts this year, with meetings on November 7 and December 18, which means that one of the meetings will cut interest rates by 50 basis points.

Position data show that since the Fed made its decision last week, the interest rate market has begun to prepare for November 7. Open interest in two-year Treasury futures has increased significantly.

In the past week, JPMorgan Chase's Treasury clients' direct long and short positions both increased by 2 percentage points, and the net long position remained unchanged at 6%. The number of direct shorts by all clients is currently at its highest level in a month.