Svmuu News: The weaker-than-expected nonfarm payrolls report prompted traders to scale back their expectations for interest rate hikes by the Federal Reserve in the coming months, causing U.S. Treasury yields to rise.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 10-year Treasury yield dropped 2 basis points to 4.46%.
Federal ReserveInterest rate swaps indicate that traders now see a roughly 20% probability of a rate hike at the Federal Reserve’s meeting later this month, down from 33% before the data was released. The market is pricing in fewer than two rate hikes of 25 basis points each through March 2027. (Jin Shi)