Citigroup: Bets on Fed skipping rate cut in December attractive
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Odaily Planet Daily Report: Citi analyst Jabaz Matai said that based on the current market odds, it is attractive to bet that the Fed will not cut rates again in December. The market generally expects the Fed to cut rates by 25 basis points this week, but given the recent series of strong economic data, this may be the last rate cut by the Fed this year. His latest report recommends a swap trade where traders agree to pay a fixed annual rate of 4.404% and receive interest that floats with the Fed's target rate. If the Fed does not cut rates in December and keeps the rate between 4.5%-4.75% by the end of the year, this trade will generate a return. (Jinshi)
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