Posted 4/8/2024, 6:53:50 PM
Rate Cut Bets Fade as Economy Defies Slowdown Predictions
- Futures traders have reduced expectations for Fed rate cuts in 2024 to lowest level since October, now around 60 basis points
- Rate cut expectations have shifted rapidly in recent months as economy shows unexpected strength
- First 25 basis point cut now priced in for June at 49% probability, down from 57% a week ago
- Benchmark 10-year Treasury yield hit highest level since November, reflecting lower rate cut expectations
- Investors watching Wednesday's inflation data for further clues on likelihood of Fed rate cuts this year
