Bond investors and rates traders are increasingly betting interest-rate cuts will start by the summer, challenging policymakers’ mantra of high borrowing costs for the foreseeable future. Markets are now wagering that the Federal Reserve will cut rates for the first time in June, and will have enacted almost 100 basis points of reductions by the end of 2024. A similar amount of cuts is priced from the European Central Bank, potentially starting as soon as April. And in the UK, the Bank of England is seen reducing the benchmark rate by close to 70 basis points. That could prove a problem for central bankers, who’ve ... (full story)