Rate Cut Expectations

have gotten a bit extreme in my Opinion.

this is snapshot from 1-27 52% chance of June cut 24% april cut
Now look at today’s pricing April has 88% chance of Rate cut,June has a 100% chance of 25 bps cut and another 44% of 50 Bps cut! No wonder why Eurodollalr call options are being bought aggressively last 2 days

Now Take a look at the market implied rates today vs 1 month ago. This shows what market is pricing for fed funds rate over 3 year horizon pricing shows more rate cuts expected. More proof of Why Eurodolalrs being bought

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