Svmuu News: Following a weaker-than-expected nonfarm payrolls report, U.S. Treasury prices rose as traders scaled back their expectations for interest rate hikes by the Federal Reserve in the coming months.The yield on the two-year Treasury note—which is most sensitive to changes in monetary policy—fell 6 basis points to 4.11%, while the yield on the 10-year Treasury note fell 2 basis points to 4.46%.Interest rate swap data shows that the market now prices in a roughly 20% probability that the Federal Reserve will raise rates at its meeting later this month, down from 33% prior to the report’s release.
The market expects the Federal Reserve to raise rates fewer than twice by March 2027, with each hike not exceeding 25 basis points.Nonfarm payrolls rose by 57,000 last month, while figures for the previous two months were revised downward; economists surveyed by Bloomberg had previously forecast an increase of 113,000. The unemployment rate fell to 4.2% due to a sharp decline in the labor force participation rate. (Jin Shi)