Traders Ramp Up Bets on December Fed Cut After Mixed Jobs Data
- Swaps price in 80% odds of a quarter-point cut in December
- Policy-sensitive two-year note yield slides below 4.10%
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US Treasuries rallied and traders boosted their bets on a Federal Reserve interest-rate reduction this month after a mixed November employment report.
Yields on two-year notes, which are sensitive to central-bank policy changes, slid as much as seven basis points to around 4.08% and retained the bulk of their drop late afternoon in New York, after the data showed that job creation and the unemployment rate both increased last month. Traders are pricing in an approximately 80% chance of another quarter-point easing at the Fed’s December meeting, up from 64% before the data.