Svmuu News: U.S. Treasury yields fell as traders nearly wiped out bets on an interest rate cut by the Federal Reserve later this month. This followed a larger-than-expected drop in the December unemployment rate, which offset the impact of weak overall job growth.Following Friday’s report, U.S. government bond prices fell, pushing yields across all maturities up by as much as 3 basis points.Bond traders maintained their forecast of two rate cuts in total for 2026, with the first expected around mid-year. John Briggs, head of U.S. interest rate strategy at Natixis North America, said, “For us, Federal Reserve is more focused on the unemployment rate than on the noise in the overall data. So, in my view, this is slightly bearish for U.S. rates.”Previously, the release of the September, October, and November labor reports had been delayed due to the six-week government shutdown from October 1 to November 12. This employment data provides the first “clean” reading capable of reflecting macroeconomic employment trends. Federal Reserve Whether further rate cuts will be implemented is seen as dependent on the performance of the labor market in the coming months. Previously, in response to labor market weakness, the Federal Reserve. lowered the target range for short-term lending rates at its last three meetings. However, some officials remain concerned about inflation exceeding the target, which is viewed as limiting the pace of further easing. (Jin Shi)