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Bond Market’s Misread of Fed at Peak, Bloomberg’s Wong Says

  • Swaps price in rate cuts early next year in wager on slowdown
  • Bloomberg Chief US Economist says calls on Fed pause premature
Updated on

When it comes to predicting the Federal Reserve’s path, the US bond market is more misguided now than at any other time this year as traders increasingly wager the central bank will start cutting rates early next year.

That’s the view from Bloomberg Economics’ chief US economist Anna Wong and her colleagues, after Treasury bond yields retreated sharply from this year’s peaks on speculation the economy is slowing and inflation is poised to come down.