Deutsche Bank: Fed to Cut Rates, Expected 25 Basis Points
PANews, September 16 - According to Jin10, Rainer Guntermann, a research rate strategist at Commerzbank, believes German government bonds could stabilize early this week, amid market anticipation of the Fed's interest rate decision on Wednesday. "There seems to be a limited scope for a new leg down in yields, as the front end looks overvalued and faces very optimistic disinflation hopes," he said. While the money market is still divided on whether the Fed will start its rate-cutting cycle with a 25-basis point or a 50-basis point cut, Commerzbank economists anticipate a 25-basis point cut, "because the priority [for the Fed] will be to start the process of easing, which is likely to be followed by a series of cuts.” According to Tradeweb data, the 10-year German bund yield declined by 1 basis point to 2.141%.