Analysts: Strong Non-Farm Payrolls Weaken Rate Cut Bets, Fed Forecasts No Rate Cuts Until June

Odaily News: Due to strong U.S. labor market data, the market has reduced bets on the Federal Reserve cutting interest rates this year. U.S. Treasury prices fell, pushing yields up by 3 to 5 basis points, with the policy-sensitive two-year Treasury yield leading the gains. The market's previous expectation for the Fed to ease monetary policy this year was only about 1 basis point, compared to around 4 basis points before the report was released. David Robin, an interest rate strategist at TJM Institutional Services LLC, stated that it is "highly likely" the Fed will keep rates unchanged until at least the end of June, or even longer. He added, "This is pre-conflict data, but even so, it shows a higher baseline (for rate cuts)." (Jin10)