TechFlow news, on November 6, according to Jinshi Data, Citigroup analyst Jabez Matei said that based on current market odds, betting that the Fed will not cut interest rates again in December is attractive. The market widely expects the Fed to cut rates by 25 basis points this week, but given a recent series of strong economic data, this could be the Fed's final rate cut of the year.
His latest report recommends entering into a swap trade where traders agree to pay a fixed annualized rate of 4.404% and receive floating interest tied to the Fed's target rate. This trade would yield returns if the Fed does not cut rates in December and instead holds them at 4.5%-4.75% through year-end.
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