Traders bet the Federal Reserve will cut rates by a total of 44 basis points by the end of the year
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U.S. Treasury bonds rose due to a disappointing employment report, boosting market expectations for a Federal Reserve rate cut this year. The 10-year Treasury yield fell by 3 basis points to 4.1%, while the 2-year Treasury yield dropped by 5 basis points to 3.53%. Interest rate swap data shows that traders are betting on a cumulative 44 basis point rate cut by the Federal Reserve by December, compared to the 35 basis points expected before the report was released.
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