Strong employment data puts pressure on US bonds, traders lower their bets on Fed rate cuts

Gold Finance reported that the price of US treasury bond bonds fell. After the release of stronger than expected employment and wage growth data, traders began to cut their interest rate cut bets this year. The yields of government bonds of various maturities have risen, with short-term bond yields ranking among the top. According to interest rate swap data, traders expect a probability of about 70% for a 25 basis point rate cut in September, while the probability expected on Thursday is about 90%. Traders generally expect the Federal Reserve to keep interest rates unchanged at its meeting on June 17-18, with only a 10% chance of a rate cut in July. Kevin Flanagan, head of fixed income strategy at WisdomTree, said, "The employment data rules out the possibility of interest rate cuts in June and July. We will continue to remain on the sidelines, and given that employment has not slowed down, the market is now focusing on whether next week's CPI can continue the downward trend of inflation