TechFlow news, bond traders are betting the Fed will cut interest rates by 50 basis points in September, rather than the standard 25 basis points. Weak CPI data released last Thursday triggered buying in October contracts, pushing trading volume to a record high. Marilyn Watson, BlackRock's global head of fundamental fixed income strategies, said the Fed is likely to cut rates in September, although she expects a 25-basis-point reduction. Swap pricing reflects market expectations for a 25-basis-point rate cut in September and a total of 60 basis points in cuts by year-end.
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