The market is starting to expect the Federal Reserve to cut interest rates by 50 basis points in September.

Odaily Odaily News: Due to concerns about the US economic recession, the market has increased bets on the Fed to cut interest rates. The US 2-year Treasury yield continued its overnight decline and fell to 4.11% in early Asian trading, the lowest level since May 2023. As of press time, interest rate futures show that the market is pricing in an 87BP rate cut by the Fed this year, and there are still 13BPs to bet on four rate cuts this year. The Fed has three more meeting windows this year to cut interest rates, and the probability of a 50BP rate cut in September has risen to 33%. (Jinshi)