Non-Farm Payroll Data Far Exceeds Expectations, Traders Reduce Bets on Fed Rate Cuts

Odaily According to the January non-farm payroll report, US short-term interest rate futures declined. Traders now see only a 20% chance of a Fed rate cut before April, significantly lower than the approximately 40% chance before the data release. Although they still bet on the Fed's next rate cut occurring in June, the probability of the Fed holding rates steady at that time has risen to nearly 40%, compared to about 25% before the employment report was released. (Jin10)