Bond traders are changing gears again. After a raft of data helped all but price out interest-rate hikes for the rest of the year, wagers in the options market are looking to hedge the risk that the Federal Reserve pivots to cutting rates in 2027.
Source: [Bloomberg Markets](https://www.bloomberg.com/news/articles/2026-08-18/bond-traders-are-hedging-risk-fed-pivots-to-rate-cuts-in-2027)