Fra Zerohedge:
Despite a modest bounce today, the collapse in stock prices and bond yields since the ‘non-event’ “won’t affect our market” Brexit vote has sent market-implied rate-hike odds careening lower. In fact, there is now a 0% chance of a rate hike to November and a 23% chance of rate-cut in September with December (post-election) rate-hike odds just 7.7%!!! Fed Credibility is official dead…
Fed rate movement expectations have collapsed…
With stunning 23% chance of cut now in September…
And market bets (Par Eurodollar Call Open Interest) on NIRP in 2017 are soaring to record highs…
Charts: Bloomberg
