Commerzbank: The Federal Reserve is about to cut interest rates, expected to be 25 basis points

PANews reported on September 16 that according to Jinshi, Rainer Guntermann, interest rate strategist at Commerzbank Research, said that German government bonds may stabilize at the beginning of this week as the market looks forward to the Fed's interest rate decision on Wednesday. He said: "The new round of downward trend in yields seems limited because the front-end valuation looks too high and faces very optimistic anti-inflation hopes." The money market is still divided on whether the Fed will start the interest rate cut cycle by cutting interest rates by 25 basis points or 50 basis points. Economists at Commerzbank expect the bank to cut interest rates by 25 basis points, "because the (Federal Reserve's) first priority will be to start the interest rate cut process, which may be followed by a series of interest rate cuts." According to Tradeweb data, the 10-year German government bond yield fell 1 basis point to 2.141%.