Bond traders believe that the Federal Reserve will cut interest rates, setting a record for the risk assumed in U.S. bond futures

Bond traders are taking on record risks, betting heavily on the U.S. Treasury market in anticipation of the Federal Reserve's imminent first rate cut. Before the start of the Jackson Hole Central Bank annual meeting on Thursday, the number of leveraged positions in U.S. Treasury futures has risen to a historic high. Data from Chicago Mercantile Exchange and institutional analysis show that last week, open positions rose to nearly 23 million 10-year U.S. bond futures contracts, setting a record equivalent to about $1.5 billion risk per basis point fluctuation.