Traders Load Up on Hedges for Shallower Fed Rate-Hike Cycle
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Traders are shielding themselves from the possibility that the Federal Reserve raises interest rates less than markets are currently pricing in. Interest-rate swaps now reflect expectations for three quarter-point rate rises by next June, a view that solidified after central bank policymakers voted last week to raise their lending benchmark by a quarter point and signaled more increases will be needed to keep inflation at bay. Phoebe White, Rates Strategist at UBS, discusses the path of rates and how many rate hikes we could see heading into 2027. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET Saturday & Sunday 7am-10am ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly
Tags: 10 year yield, Bonds, Economy, Federal Reserve, Inflation, Interest Rates, Investing, Kevin Warsh, Paul Sweeney, Phoebe White, Risk, Spending, Tom Keene, Treasuries, UBS Securities, consumer, cuts, hikes, interest, rates
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