Bond traders are making a big bet that the Federal Reserve will cut interest rates soon, with Chair Jerome Powell’s speech at the annual Jackson Hole gathering kicking off a crucial week for the Treasury market. The market is predicting a quarter-point rate cut next month and at least one more by year-end. Historically, Powell has used this event to make significant policy announcements, making this time potentially momentous for the bond market.
Source: https://www.bloomberg.com/news/articles/2025-08-17/bond-market-s-rate-cut-bets-enter-decisive-stretch-with-powell