Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| December 10, 2007 | | Spread betting and contracts for differences on U.S. interest rates | Spread bets and CFDs on interest rates should take into account that a Fed rate cut is expected this week. The U.S. economy is still headed for a recession, and the rate cut is being used to help stimulate a measure of growth. Reuters reports on the options for a Fed rate cut:
The Fed is seen cutting its target for overnight rates by at
least a quarter-point to 4.25 percent on Tuesday, but interest
rate futures have trimmed the chance of a half-point cut to
about 25 percent from near 60 percent last week. | | |
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