Excerpt from:  Bonds and Interest Rates CFDs and Spread Bets
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September 18, 2007

Fed Rate Cut Decision Due Today

Spread bets and CFDs on U.S. interest rates
"I believe they'd prefer to cut by the smaller amount to demonstrate that the issue is under control and the risk is in the process of being re-appraised."
Spread betting on interest rates is becoming more interesting today as investors await the Fed rate cut decision. While there is still a chance that the Fed rate cut won't happen, most analysts agree that the real debate is by how much the Fed rate cut will be. Forbes reports on GFT's Ian Copsey's take on U.S. interest rates:

He said central banks don't like drastic changes and the question is more whether cutting by a quarter of a percentage point will cause more market volatility than a full half a percentage point cut.

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