Bond Market's Bet on a Half-Point Fed Cut This Month Is Over.

The bond market is no longer expecting the Federal Reserve to cut interest rates by half a point this month, as recent inflation and labor market data suggest a more measured approach. Swap traders have now fully priced in a quarter-point reduction at the Fed's policy announcement next week. The Treasury market has also benefited from the S&P 500 Index falling, with stocks tied to the economy being hit the hardest. The biggest question for investors is whether the economy is heading for a soft landing that only requires modest rate cuts or a harder landing in the next year. [Extracted from the article]