Bond traders believe the Federal Reserve will cut interest rates, as the risks taken in U.S. Treasury futures reach record levels

ChainCatcher news, bond traders are taking on record risks as they make large bets in the U.S. Treasury market in anticipation of the Federal Reserve's imminent first rate cut.

Ahead of the Jackson Hole central bank symposium starting on Thursday, the number of leveraged positions in U.S. Treasury futures has risen to an all-time high. Data from the CME and institutional analysis show that last week, open interest rose to the equivalent of nearly 23 million 10-year Treasury futures contracts, setting a record, which corresponds to a risk of about $1.5 billion for each basis point movement. (Jin Shi)