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Treasuries 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.
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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.
·Bern, Switzerland
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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.
·United States
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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.
·Montreal, Canada
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Total News Sources16
Leaning Left3Leaning Right3Center0Last UpdatedBias Distribution50% Left, 50% Right
Bias Distribution
- 50% of the sources lean Left, 50% of the sources lean Right
50% Right
L 50%
R 50%
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