The price of US Treasury bonds plummeted, and the better-than-expected non-farm payrolls report prompted traders to withdraw their bets on the Fed's interest rate cut this month. Short-term treasury bonds led the decline. 2-year and 5-year yields rose nearly 10 basis points, and 10-year yields jumped 6 basis points to 4.34%. Gregory Faranello, head of US interest rate trading and strategy at AmeriVet Securities, said that there is almost no possibility that interest rates will be cut in July. “The Fed will suspend action during the summer,” and “employment data is the key to the Fed's policy adjustments.” This report provides room for Powell to continue to stay on hold. According to interest rate swap data, traders believe that the possibility of interest rate cuts at the July 29-30 meeting has dropped to close to zero, while the probability of cutting interest rates in September is about 75%. According to the data, the number of non-farm payrolls increased by 147,000, which is significantly higher than the median estimate of 106,000 in the Bloomberg survey. The data for the previous two months was slightly revised. The unemployment rate fell from 4.2% to 4.1%.

The price of US Treasury bonds plummeted, and the better-than-expected non-farm payrolls report prompted traders to withdraw their bets on the Fed's interest rate cut this month. Short-term treasury bonds led the decline. 2-year and 5-year yields rose nearly 10 basis points, and 10-year yields jumped 6 basis points to 4.34%. Gregory Faranello, head of US interest rate trading and strategy at AmeriVet Securities, said that there is almost no possibility that interest rates will be cut in July. “The Fed will suspend action during the summer,” and “employment data is the key to the Fed's policy adjustments.” This report provides room for Powell to continue to stay on hold. According to interest rate swap data, traders believe that the possibility of interest rate cuts at the July 29-30 meeting has dropped to close to zero, while the probability of cutting interest rates in September is about 75%. According to the data, the number of non-farm payrolls increased by 147,000, which is significantly higher than the median estimate of 106,000 in the Bloomberg survey. The data for the previous two months was slightly revised. The unemployment rate fell from 4.2% to 4.1%.