The Federal Reserve's first rate cut in four years, with Bank of America predicting a further 75 basis point cut before the end of the year.
Bank of America Global Research Company said on Wednesday (September 18th) that it is expected that the Federal Reserve will cut interest rates by 75 basis points for the remaining time this year, which is higher than previously estimated. Bank of America also pointed out that the Federal Reserve may further reduce interest rates by 125 basis points by 2025. On the same day, Goldman Sachs predicted that the Federal Reserve would cut interest rates by 25 basis points multiple times until mid-2025.
Why did the bond market move in the opposite direction when the Federal Reserve cut interest rates for the first time in four years?
The Federal Reserve took a major step on Wednesday, September 18, reducing borrowing costs immediately for the first time in four years. This is the first time the Fed has cut interest rates since 2020, reducing the short-term policy rate by half a percentage point and lowering the target range to 4.75% to 5%.
Fed Has Signaled More Cautious Approach to Easing Cycle -- Market Talk
swhy: In the context of the Federal Reserve's interest rate cut, interest rate-sensitive real estate and manufacturing sectors may benefit.
The Federal Reserve's September meeting statement believes that progress has been made in achieving the target inflation, while job growth has slowed down and inflation and employment risks are roughly balanced. The meeting lowered the policy interest rate by 50 basis points and continued with the planned balance sheet reduction.
China and Japan, the two major creditors, reduced their holdings of US bonds in July: China's total holdings decreased by nearly 40 billion US dollars this year.
On Wednesday, September 19th local time, the US Department of Treasury released the Treasury International Capital (TIC) report for July 2024. The report shows that the scale of US Treasury holdings by foreign investors reached a new all-time high in July. However, the two largest foreign debt holders of the US, Japan and China, both chose to reduce their holdings.
The global major changes have begun! The stock markets in Japan and South Korea opened high. Which assets are affected by the interest rate cut by the Federal Reserve?
The era of great changes has already begun!
The Federal Reserve has made a rare and significant cut of 50 basis points! Powell: Don't think this is a new pace of rate cuts.
Federal Reserve Chairman Powell's hawkish comments indicate that the Fed's economic forecast summary does not indicate any urgency to cut interest rates. Monetary policy decisions will be driven by data, and rate cuts will be accelerated, slowed down, or paused as needed. He stated that the increased downside risks to US employment are worth watching, and the subsiding upside risks to inflation are encouraging, but the fight against inflation is not yet won. The Fed does not have a predetermined policy path and will decide on actions at future meetings.
The Federal Reserve announces! 50 basis points cut, Powell's heavyweight statement!
The Fed's interest rate cut is finally here!
Here comes the full text! Powell's press conference was quite hawkish, causing a major reversal in assets. What did he say exactly? (Chinese-English Comparison)
If the economy remains stable and inflation continues to exist, the Federal Reserve will switch to cutting interest rates more slowly; if the labor market unexpectedly weakens or inflation decreases faster than expected, it is also prepared to respond with aggressive interest rate cuts.
Gundlach Says the Fed Still a Bit Behind the Curve After Large 50bp Rate Cut
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This Part of the Treasury Market May Move the Most on a Fed Interest-rate Cut
Treasury-bill Rates Tumble After Fed Delivers Biggest Interest-rate Cut in Years
Ishares Iboxx $ High Yield Corporate Bond Etf Options Spot-On: On September 18th, 185.65K Contracts Were Traded, With 7.3 Million Open Interest
On September 18th ET, $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US)$ had active options trading, with a total trading volume of 185.65K options for the day, of which put options accounted
Treasury Yields Settle Higher in Choppy Trade After Fed's Big Cut -- Market Talk
Difficult to sleep tonight! The suspense of interest rate cut is soaring, the market's divergence is intensifying, what script will the interest rate debate perform tonight?
The Federal Reserve's interest rate cut in September is a done deal, but there is a fierce debate over the magnitude of the rate cut. The camps advocating for a 50 basis point cut and a 25 basis point cut continue to argue with each other.
Daily options tracking | Bullish signals everywhere! Intel's multiple call options have doubled in premium and surged; Gold ETF trading is hot, with the call-to-put ratio climbing to 63%.
Tesla's trading volume yesterday surged 30% compared to the previous trading day, reaching 1.22 million shares. The call option chain skyrocketed to 65%. Among the options chain, the long positions occupy the main position, with the largest volume being the call option with a strike price of $235 expiring this Friday, with a volume of 0.1 million shares.
Morgan Stanley fund: When will the convertible bond market reach a turning point?
Overall, the long-term value of convertible bond assets is gradually becoming apparent.
Tonight, the world is paying close attention! The "giant ship" of the Federal Reserve's interest rate cut will officially set sail.
①For the global financial markets, tonight is destined to be a sleepless night... ②As scheduled, the Federal Reserve is scheduled to announce the September interest rate decision at 2:00 AM Beijing time on Thursday; ③It is generally expected in the industry that the Federal Reserve will announce the first rate cut in 4 years at this meeting, with little suspense, but at the same time, this is also the most 'mysterious' or uncertain Federal Reserve interest rate night in recent years.
U.S. Treasury Curve Tends to Steepen Into and During Rate-Cutting Cycle -- Market Talk