Market comment

Market pricing in aggressive rate cutting cycle from the Fed

DAVY VIEW

US 10-year yields fell below 2% for the first time since 2016 after last night’s Fed policy meeting statement was perceived as copper-fastening a rate cut in July. Despite the majority of FOMC members still signalling that they see rates on hold (or rising) this year, options show that investors are pricing in a 70% probability of three rate cuts by the end of 2019.

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Jun 20 2019, 08:40 IST/BST

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