US interest futures edged higher on Thursday as Treasury yields retreated for a second consecutive session, with traders betting on a softer policy trajectory following the Fed’s 25-bps rate cut. However, the investors focused on the split in the committee and the Fed Chair’s tone, which signaled more easing in 2026, despite the emphasis on Read More…
US interest futures swung swiftly on Thursday after fresh US data showed stronger job growth in September, prompting traders to reduce bets on December rate cuts. A few weeks ago, markets were certain about the rate cut. According to FactSet, the probability of a rate cut is down to 22% from 97% in mid-October. The Read More…
US interest futures experienced a decisive reset on Friday as market participants reassessed the Fed’s policy trajectory after the US government shutdown ended. The reduced uncertainty and potential visibility of key data have triggered a divergence between short-dated and long-dated contracts. Short-dated interest futures, such as 2-year Treasury futures and Fed funds, jumped after the Read More…
US interest futures remain choppy as deteriorated risk sentiment meets mixed policy signals and upcoming data risks. The divergence between front end of the curve and longer dated contracts is quite evident now. The short-term contracts like 30-day Fed funds futures that price in policy expectations are fluctuating as traders trim the hopes of aggressive Read More…
This week, US interest futures experienced volatility as traders reacted to Cautious Fed guidance and rising long-term yields. The Fed reduced its benchmark rate by 25 bps to 3.75 – 4.00%, which was largely priced in by the markets. However, Fed Chair Powell warned that further cuts are not guaranteed. This eased the expectations of Read More…
The US interest futures traded cautiously this week as markets anticipated two key developments. This included the delayed Consumer Price Index data expected on 24 October because the US government shutdown lowered market visibility. The second is the FOMC meeting, scheduled to be released on 28-29 October. In the last week, the major ZN1 and Read More…
