Traders Rip Up Bets on Big Fed Cuts as Jobs Data Hits Bonds
- Rate-cut bets slashed as two-year yield climbs 15 basis points
- Traders price out half-point Fed rate cut for November
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Traders slashed their bets on the pace of future Federal Reserve interest-rate cuts after September US employment data blew past estimates and signaled a robust hiring trend.
The strong jobs report had traders shredding their aggressive bets for outsized rate cuts at the next policy meeting. Leading up to the data, the bond market had once more been running ahead of the Fed’s view on the trajectory of rate easing for this year.