U.S. private jobs data plunge led to higher Treasury bonds, traders bet up the ante rate cut

Treasury prices rose in response to a sharp drop in US private sector jobs data, prompting traders to increase bets on the Federal Reserve cutting interest rates this year. < b > Interest rate swap contracts tied to the date of the upcoming Fed meeting show a cut of 46 basis points by the end of the year, compared with 42 basis points before the data was released. Gregory Faranello, head of US rates trading and strategy at AmeriVet Securities, said: "The labour market has weakened significantly, and the market is reacting this way because the official non-farm payrolls report on Friday appears unlikely. In addition, the official employment data has been revised before, which not only strengthens the expectation that the Federal Reserve will resume interest rate cuts, but also supports the trend judgment of'overall interest rate decline '. "