Traders Worldwide Herald End to Rate Hikes After US Bank Run
- ‘We believe the Fed is near its peak,’ says SEB strategist
- ECB now seen as the main hawkish central bank in swaps
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Global bond markets have declared that the steepest global monetary tightening campaign in a generation has nearly run its course.
In the span of days, traders have dramatically unwound bets on further rate hikes and current pricing shows the Federal Reserve is likely going to increase rates twice more at most. It’s a similar picture in the UK, where investors are pricing 50 basis points of tightening over the next four meetings, half of what was baked in last week.