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Below the Perspective on expectations from US Fed Rates Announcement by Siddharth Chaudhary, Senior Fund Manager - Fixed Income, Bajaj Finserv Asset Management

“Market will watch out for US CPI and FOMC outcome today. The current pricing by US Treasury curve suggests that bonds have priced in little less than 50bps cut by December 2024. The Fed has maintained the projection of three 25 bps reductions for last six months now versus the markets which has lowered its expectation from around seven cuts in early this year in response to data surprises in US.

The market right now is also not pricing in any possibility of Fed pivoting to less than two cuts in this meeting for the rest of the year. This though is not base case but still remains a possibility in light of recent data”.

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