Non-farm payrolls surged, dampening expectations for a Federal Reserve rate cut

According to Jinshi, the U.S. non-farm payrolls unexpectedly surged, leading to a hit in the U.S. bond market as traders reduced bets on a rate cut by the Federal Reserve this year. Short-term government bonds were hit hardest, with the two-year Treasury yield rising by 6 basis points to around 3.51%. The money market currently expects the Fed's next rate cut to occur in July, rather than the previously anticipated June. Bret Kenwell from eToro stated that investors should welcome the U.S. employment report, which will have constructive implications for the economy and the market.