Mystery trader bets on a 50-basis-point Fed rate cut, CME sees the largest federal funds futures block trade in history In the federal funds futures market on the CME, a 'mystery trader' is currently hedging against the possibility of a super-dovish surprise in this week’s Fed decision. According to researcher Ed Bolingbroke, Monday saw the largest federal funds futures block trade ever recorded at the front end of the curve. The trade involved 84,000 October federal funds futures contracts, with a risk exposure of $3.5 million per basis point. CME confirmed the trade on X, and it’s reported that both the price and timing of the block trade align with buyer characteristics. Given that the current swaps market has already priced in a 25-basis-point rate cut, this move might suggest the mystery trader is hedging against the risk of a 50-basis-point cut in Wednesday’s Fed decision. https://www.(techflowpost.com)/newsletter/detail_98868.html