Bond Traders Hedge for Both Cuts and Hikes After Fed Division
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Bond Traders Hedge for Both Cuts and Hikes After Fed Division

May 1, 2026
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A rare opportunity is opening up in rates derivatives underlying the 31 trillion Treasury market: Division at the Federal Reserve has traders placing bets on interest-rate cuts next year while also hedging for a hike.

Bond Traders Hedge for Both Cuts and Hikes After Fed Division
Bloomberg
Bloomberg

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