Another 25 bps cut in interest rates

4 thg 3, 2020

Another 25 bps cut in interest rates

This analysis predicts a FED 50 bounce cut. The chart shows the yield curve of the two-year US government bond and its future path. The current analysis attempts to predict the next three months' interest forecast. Let's look at the chart. It can be seen that in the shorter term, the market once again ran ahead. It can be seen that the intervention was a hurry for the Fed to announce a further cut in interest rates at the open market committee meeting on March 18. In my opinion, this can happen if the market prices future rates in the 0.5% range within a few days. In the event that the futures interest rates continue to fall as a "falling knife", it can be stated with certainty that, in addition to interest rate cuts, additional asset purchase incentives may be announced.