Nonfarm Payrolls Miss Sparks Rate Hike Doubts, Treasury Yields Decline

Odaily Odaily reports that the weaker-than-expected nonfarm payrolls report has led traders to lower their expectations for Federal Reserve rate hikes in the coming months, driving a rally in U.S. Treasuries. The two-year yield, most sensitive to monetary policy changes, fell 6 basis points to 4.11%, while the 10-year yield declined 2 basis points to 4.46%.

Fed funds rate swaps show traders now see roughly a 20% probability of a rate hike at the Fed's meeting later this month, down from 33% before the data release. The market has priced in fewer than two 25-basis-point rate hikes through March 2027. (Jin Shi)