Bond Traders Step Up Short Bets on Fear the Fed Will Dash Rate-Cut Hopes
- Concern that Fed may reduce projections for 2024 rate cuts
- Options trading shows positioning to protect against a selloff
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Bond traders are stepping up short bets against Treasuries and buying derivatives to protect against a selloff, positioning for the risk that the Federal Reserve will dial back the market’s expectations for interest-rate cuts this year.
While the US central bank is all but certain to hold rates steady Wednesday, trading data points to growing concern that its new forecasts will show increased reticence to ease monetary policy.