U.S. private sector employment data drops sharply, Treasury prices rise, fueling rate cut bets

Jinse Finance reported that after a significant decline in U.S. private sector employment data, U.S. Treasury prices rose accordingly, prompting traders to increase their bets on a Federal Reserve rate cut this year. Interest rate swap contracts linked to the upcoming Federal Reserve meeting dates now indicate an expected rate cut of 46 basis points by the end of the year, compared to 42 basis points before the data release. Gregory Faranello, Head of U.S. Rates Trading and Strategy at AmeriVet Securities, stated that the labor market is clearly weakening, and the market reaction is due to the seemingly low probability of an official non-farm payroll report being released this Friday. (Golden Ten Data)