The US Job Market is Strong, Market Scaling Back Fed Rate Cut Bet

BlockBeats News, May 2nd, Stronger-than-Expected US Employment Data showed that tariff uncertainty has not yet substantially impacted the US labor market, prompting traders to reduce their Fed rate cut bets, followed by a drop in US Treasury yields.

Following a 177,000 increase in nonfarm payrolls, the 2-year Treasury yield rose by 7 basis points to 3.77%. Traders trimmed their Fed rate cut bets, expecting a total rate cut of around 85 basis points this year, compared to the previous expectation of around 90 basis points before the report. (FXStreet)