According to CoinMeta, traders are hedging against the risk of the Federal Reserve shifting to interest rate cuts in 2027, and bond traders are readjusting their strategies once again. Data indicates that it is almost impossible for the Fed to raise rates in the remainder of this year, and the options market is betting in an attempt to hedge against that risk. Long-term bond yields have risen to multi-year highs, and if the Fed remains on the sidelines, it could keep inflation rates above target levels for a longer period. Options traders are paying attention to signs of a weakening U.S. economy, believing that this could trigger a market reversal. Last week's data showed that inflation and consumer demand slowed down in July, and market expectations for a Fed rate hike at its September meeting have cooled. Participants in the options market have begun to adjust their positions, reducing the rate hikes priced in for the coming months in the swap market. Some options are even considering hedging against the possibility of interest rate cuts in the middle of next year. Jeff Schull, head of the rates department, stated that concerns about rate hikes have eased, and positions that recently bet on that outcome are being closed out.