Nonfarm payrolls miss expectations, dampening rate hike expectations, US Treasury yields fall accordingly

Odaily Odaily News The weaker-than-expected nonfarm payrolls report prompted traders to lower their expectations for Federal Reserve rate hikes in the coming months, leading to a rise in U.S. Treasury bonds. The yield on the two-year Treasury note, which is most sensitive to monetary policy changes, fell 6 basis points to 4.11%, while the yield on the 10-year note fell 2 basis points to 4.46%.

Fed interest rate swaps show traders now see about a 20% chance 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 by March 2027. (Jin Shi)