This is something we’ve also seen in the bond market with the 10 year Treasury yields back to last Wednesday’s levels.
In fact, the rate cuts bets have been a function of the stock market selloff as that impacts negatively the wealth effect and depresses the consumer and business sentiment. We are not out of the woods yet but as long as the stock market continues to rebound, the rate cuts bets will likely keep on being trimmed
As markets stabilise, so do the rate cuts expectations
