Jobs data confounds Fed rate cut expectations

Treasury bond traders in the US market and global markets a few days ago stood firmly behind bets that the Federal Reserve (the US central bank) would cut interest rates sharply in 2024.

Traders bet 70% that the Federal Reserve would cut interest rates by a quarter of a percentage point in March – according to agencies.

But these bets diminished after the report on job creation in America, which exceeded estimates, accompanied by high wages.

However, US Treasury bond traders remained with high expectations for a rate cut in the first quarter of this year.