Skip to content

Topic

Interest Rate Expectations

Market-implied hike probabilities, bank forecasts, and the divergence between them.

Current stories

investOne report1 publisher

FX option volatility hits a post-COVID low as speculators build a record $51.4 billion dollar long

Speculators built a record $51.4 billion net dollar long by late July, weeks before G5 currency option volatility sank to a post-COVID low of 5.33. Currency protection got cheaper even as year-end rate bets climbed from 3.05% to above 4%.

Publishers:seekingalpha.com

Reality

Evidence55
Adoption
Not scored
Hype gap+10
Incentives
Not scored
Confidence45
investOne report1 publisher

Seeking Alpha calls four recent BDC bond deals a sector-wide income headwind

ARCC, CSWC, OCSL and OTF have all issued bonds into a higher curve. The Fed turn that raised their funding cost is the same one Seeking Alpha credits with supporting third-quarter net income, and both land in one quarter.

Publishers:seekingalpha.com

Reality

Evidence28
Adoption30
Hype gap+35
Incentives60
Confidence40
investOne report1 publisher

Quantum's pure plays trail their own sector ETF by up to 70 points this year

A 60 per cent chance of a quarter-point hike prices about 15 basis points of tightening and knocked IonQ down 4 per cent, but no discount rate explains why the Defiance Quantum ETF is up 36 per cent while D-Wave is down 34.

Publishers:247wallst.com

Reality

Evidence34
Adoption
Not scored
Hype gap+42
Incentives76
Confidence36
investOne report1 publisher

Warsh's first Jackson Hole keynote moves September hike odds to 50-60%

Headline PCE at 3.7% is the number Warsh quoted, but the six-month annualized run of 4.1% is what decides whether September is one hike or the first of several, and this chair does not plan to say in advance.

Reality

Evidence24
Adoption
Not scored
Hype gap+35
Incentives55
Confidence38
investOne report1 publisher

Lee readies the Korean state as the last bid under a housing crash he expects

Ordering ministries to plan bulk purchases of cheap homes tells lenders what the government's own base case is, and since the plan names no budget, no threshold and no buyer, the only priced thing in it is a rate forecast.

Publishers:en.sedaily.com

Reality

Evidence44
Adoption
Not scored
Hype gap+36
Incentives72
Confidence41
investOne report1 publisher

Three dissents for a hike turn a routine Fed hold into a positioning problem

The FOMC held at 3.50%-3.75%, but a quarter of the voting committee wanted 25 basis points immediately. Portfolios still built around the December 2025 cut are on the wrong side of that argument.

Reality

Evidence28
Adoption32
Hype gap+34
Incentives62
Confidence38