ECB President Hints Rate Cut Cycle Nearing End, Market No Longer Fully Pricing in Another 25BP Cut This Year
Traders have reduced their bets on future rate cuts by the European Central Bank and no longer fully price in a further 25 basis point cut this year. The money market's expectation for further rate cuts before December was once only 23 basis points, compared to 32 basis points before the ECB's rate decision on Thursday. Short-term bonds led the decline, with the yield on two-year German bonds rising by 7 basis points to 1.87% at one point. Previously, ECB President Lagarde stated that the central bank's rate-cutting cycle is nearing its end.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US regulators postpone approval of AI chip rental price futures for at least 60 days
Federal Reserve Turns Hawkish Again! This Year's Voting Member Logan: At Least Two More Rate Hikes Needed, Pace May Accelerate
On Tuesday, following Federal Reserve Governor Waller’s call to consider a 50 basis point rate hike at the December meeting, this year’s FOMC rotating voting member Lorie Logan reiterated a hawkish stance, stating, "Given the current economic outlook, I believe at least two more rate hikes of 25 basis points each are needed. The pace of rate hikes this winter may be faster than what we have seen so far this autumn." On Tuesday, the two-year US Treasury yield jumped 19 basis points in a single day, reaching 4.74%.
Crypto prices
More
