Bond Traders Scrap Bets on July Rate Cut After Strong Jobs Data
A worker operates a forklift at a fulfillment center in Elizabeth, New Jersey.
Photographer: Eilon Paz/BloombergTreasuries tumbled after a stronger-than-expected jobs report for June prompted traders to exit bets on an interest-rate cut by the Federal Reserve this month.
Shorter-term Treasuries, which are the most sensitive to expectations for Fed policy, led the slump. Two-year yields rose about 10 basis points, while 10-year rates jumped 7 basis points to 4.35%. The dollar advanced versus its major counterparts before trimming the gains.