Reported 6 months ago
Bond traders were surprised by the robust US labor market, leading to expectations that the Federal Reserve will maintain higher interest rates for a longer period. The surge in Treasury yields prompted traders to push out their predictions for the Fed's first rate cut, after the Bank of Canada and European Central Bank began normalizing interest rates. The strong job growth data dampened optimism in the bond markets, causing increased volatility as traders adjusted their rate-cut expectations and positioning.
Source: YAHOO