Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| November 01, 2007 | | Spread betting and contracts for differences on interest rates | Yesterday's Fed rate cut of 25 basis points was widely expected by most. However, the strong language accompanying the rate cut is an indicator that further cuts may be out of the picture. Spread bets and CFDs on U.S. rate cuts should consider this, as reported by MarketWatch:
"The statement accompanying the decision acknowledges ... inflationary
pressures in the U.S. economy and the markets will likely take this as
a pointer inflationary concerns are back on the table," wrote Martin
Slaney, head of spread betting at GFT Global Markets. "This may well be
the last cut we see in U.S. interest rates until well into 2008, if at
all." | | |
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