US EditionTreasuries Fall as Better-than-Expected Job Data Resets Fed Bets
January payrolls rose by 130,000 and unemployment fell to 4.3%, leading investors to delay Federal Reserve rate cuts until July, according to market data.
- On Wednesday, money markets priced the Fed's next cut in July after a stronger-than-expected January jobs report spurred a selloff in Treasuries, with traders reducing bets on rate cuts this year.
- The January employment report showed US employers added 130,000 jobs last month, the strongest payroll growth in over a year, while the unemployment rate fell to 4.3% amid last year's hiring revisions.
- Short-Dated Treasuries moved sharply as two-year Treasuries rose toward 3.5% and equities saw an early rally fade with the S&P 500 closing near 6,940 and about 300 S&P 500 shares rising.
- Interest-Rate swaps signaled traders priced less than a 5% chance of a March cut, and analysts said the report gives Fed hawks ammunition to remain patient on easing.
- Looking ahead to June, questions about Kevin Warsh's stance arise because if the unemployment rate is stable or lower, he may keep policy on hold, complicating rate cuts.
13 Articles
13 Articles
Treasuries Fall as Jobs Data Curb Bets on Fed Cuts: Markets Wrap
(Bloomberg) -- A much stronger-than-anticipated US jobs report spurred a slide in Treasuries as traders trimmed bets on Federal Reserve rate cuts this year. An initial rally in stocks waned amid a selloff in software companies.
Treasuries Fall as Better-than-Expected Job Data Resets Fed Bets
A strong US employment report caught investors in the $30 trillion Treasury bond market off guard, sending yields surging as traders lowered their expectations for Federal Reserve interest-rate cuts this year.
The New York Stock Exchange ended in a slight drop on Wednesday, with a measured judgment on a better-than-expected US labour market in January, which pushes back expectations of a fall in the Federal Reserve (Fed) rate.
US Jobs Data Clarifies Fed Rate Cut Stand, Crypto Prices Fumble Further
US jobs data has highlighted the growth of 130k for nonfarm payroll. Crypto prices are down collectively by 0.28% in terms of market cap. Fed rate cut is less likely in March 2026. US jobs data for January 2026 is out, and the picture is better than what was anticipated. Most importantly, it sheds some more light on the possibility of a rate cut by the US Federal Reserve in its upcoming March meeting. For crypto prices, the situation has worsene…
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