Two-Year Treasuries Gain as Jobs Data Boost Bets on June Fed Cut
- Traders resume pricing in four quarter-point cuts this year
- Five-year note’s yield dips below 4% to lowest in a month
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Short-dated Treasuries gained on Friday after a US labor-market report emboldened traders to bet that the Federal Reserve will cut interest rates as soon as June.
Two-year yields, more sensitive than longer-maturity debt to Fed policy expectations, fell nearly 10 basis points at one stage to the lowest level in a month before erasing about half of the drop. While February job creation topped estimates, a large downward revision to January’s figure and a jump in the unemployment rate were more influential. The benchmark 10-year note’s yield was little changed after falling nearly five basis points.