U.S. Treasury prices fell after stronger-than-expected employment and wage growth data was released, leading traders to begin adjusting their bets on interest rate cuts this year. Yields on Treasury bonds rose across all maturities, with short-term yields leading the increase. Interest rate swap data shows that traders expect a roughly 70% probability of a 25 basis point rate cut in September, down from about 90% expected on Thursday. Traders generally expect The Federal Reserve (FED) to hold rates steady at the June 17-18 meeting, with only a 10% chance of a rate cut in July. Kevin Flanagan, head of fixed income strategy at WisdomTree, stated, "The employment data rules out the possibility of rate cuts in June and July. We remain cautious, as there is no sign of a slowdown in employment, and the market is turning its attention to whether next week's CPI can continue the trend of declining inflation."
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NftDataDetective
· 06-07 04:59
Rates cut probability
Reply0
Layer3Dreamer
· 06-07 04:58
Jobs data shifts markets
Reply0
MoonRocketman
· 06-07 04:55
The timing for orbital adjustment has not yet arrived.
Strong employment data impacts U.S. bonds, traders lower year-end rate cut expectations to 70%.
U.S. Treasury prices fell after stronger-than-expected employment and wage growth data was released, leading traders to begin adjusting their bets on interest rate cuts this year. Yields on Treasury bonds rose across all maturities, with short-term yields leading the increase. Interest rate swap data shows that traders expect a roughly 70% probability of a 25 basis point rate cut in September, down from about 90% expected on Thursday. Traders generally expect The Federal Reserve (FED) to hold rates steady at the June 17-18 meeting, with only a 10% chance of a rate cut in July. Kevin Flanagan, head of fixed income strategy at WisdomTree, stated, "The employment data rules out the possibility of rate cuts in June and July. We remain cautious, as there is no sign of a slowdown in employment, and the market is turning its attention to whether next week's CPI can continue the trend of declining inflation."