US Yields Dive After Jobs Data as Traders Move Up Rate-Cut Bets
- Markets now see the Fed’s first cut in June, instead of July
- Long-end bonds are experiencing historic declines this week
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Treasuries rallied, with 10-year yields heading for their biggest three-day decline since the onset of the pandemic in 2020, as signs of softening US labor data fueled speculation that the Federal Reserve is done hiking interest rates.
Yields on 10-year bonds dropped 13 basis points to 4.5%, extending their decline since Tuesday to roughly 40 basis points, after a government report showed the unemployment rate rose to an almost two-year high and wage growth slowed. Over the past three decades, a move of this magnitude only occurred 10 times, prior to this week.