Treasuries Retain Losses as Jobs Report Leaves Fed Path Intact
- Two-year Treasury yields rose after US employment report
- Traders see Fed’s first 2025 interest-rate cut in September
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US government bonds fell and were retaining the bulk of their losses late in New York, after mixed employment data left traders holding tight to expectations that the Federal Reserve will keep interest rates steady until later this year.
The declines on Friday pushed the yield on policy-sensitive two-year Treasuries higher by 7 basis points to 4.29% as traders maintained bets for a quarter-point rate reduction in September. All told, the swaps market suggests around 35 basis points of rate cuts for this year, less than 50 percent odds of a second quarter-point reduction.