Bond traders boost bets on half-point Fed rate cuts

There were signs traders in the futures market were protecting against a dovish surprise this week. — Bloomberg

NEW YORK: Bond traders are stepping up options wagers that the Federal Reserve (Fed) will deliver at least one half-point interest rate cut across this year’s three remaining policy meetings. 

Officials are projected to lower borrowing costs this week for the first time in 2025, with a quarter-point reduction seen as the most likely decision.