Nonfarm payrolls miss expectations, dampening rate hike expectations; U.S. Treasury yields fall accordingly

Odaily Planet Daily 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. Treasuries. The yield on the two-year note, most sensitive to monetary policy changes, fell 6 basis points to 4.11%, while the 10-year yield fell 2 basis points to 4.46%.

Fed funds 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 quarter-point rate hikes through March 2027. (Jinshi)