Bonds
Bond Traders Amassing Historic Level of Risk on Rate-Cut Bets
- Investors load up on futures as possible cut cycle nears
- Jackson Hole to provide key outlook on Fed’s policy path
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Bond traders are taking on a record amount of risk as they bet big on a Treasury market rally fueled by expectations the Federal Reserve will embark on its first interest-rate cut in more than four years.
The number of leveraged positions in Treasury futures has risen to an all-time high ahead of the central bank’s annual economic symposium in Jackson Hole, Wyoming, which will commence on Thursday. At the event, Fed Chair Jerome Powell will speak and provide more insights into the central bank’s monetary policy path for the rest of this year.