Deutsche Bank strategist: Markets have already expected at least one 50 basis point rate cut by the Federal Reserve this year

Odaily Odaily News: Federal Reserve Chairman Powell said in a speech at Jackson Hole last Friday that "now is the time to cut interest rates", and then the market's expectations for the Fed to cut interest rates by as much as 50 basis points at the September meeting have heated up. Deutsche Bank strategists pointed out that the number of applications for unemployment benefits has actually remained stable or even declined in the past few weeks. Strategists believe that the US economy may not be in trouble and are short 10-year Treasury bonds. They have given a 10-year Treasury yield target of 4.1% and a stop loss point of 3.65%. They said that the Fed's dovish attitude has been fully priced in because the market has expected the Fed to cut interest rates by at least 50 basis points in the remaining three meetings this year, eventually reducing interest rates from the current 5.25%-5.5% range all the way to 3%. (Jinshi)