The market slightly increased its bets on the Federal Reserve cutting interest rates by 50 basis points next week

The possibility of the Federal Reserve cutting interest rates by 50 basis points next week has slightly increased, as per the digestion of forward contracts. Previously, The Wall Street Journal reported that decision-makers were considering whether to cut interest rates by 25 or 50 basis points. September OIS contracts fell about 3 basis points to around 5.04% intraday low, corresponding to a rate cut of about 28 basis points for the September meeting, moving towards the mid-value of Wednesday's range; as of Wednesday's close, the corresponding rate cut was about 26 basis points. Bets on the extent of rate cuts within this year remain at around 103 basis points and remained flat during the day.