Traders Pile Into Contrarian Bet That Fed Will Front-Run Cuts

Traders Pile Into Contrarian Bet That Fed Will Front-Run Cuts

(Bloomberg) -- Traders in the interest-rate futures market are piling into a contrarian bet that would pay off in the event of aggressive Federal Reserve monetary easing this year.The wager is happening in futures on the Secured Overnight Financing Rate — which closely tracks the central bank’s key policy rate — and it involves buying the December 2024 contract while selling the contract due in December 2025.Scenarios in which the trade stands t…