10-year Treasury tumbles to early April low as weak jobs report raises chances of a half-point Fed rate cut

US Treasury revenues fell dramatically on Friday, as traders prepared for the federal reserve to reduce interest rates deeper than before to support the market of blackouts.

On Friday, the job report on Friday reflected a four -month chain in the labor market, including a sudden review of June data, which indicated that the economy has lost jobs in that month.

“I don’t think people were expecting to see this passive month,” said George Katharmpon, head of fixed income, the Americas, at DWS – noting that the latest reviews of many work categories outside health care showed negative growth for the first half of this year. “We were not necessarily pricing in it.”

As a result, the cabinet decreased for two years BX: TMUBMUSD02Y fell 11.5 basis points to 3.506 %, while the very important return for 10 years BX: TMUBMUSD10Y was 14.2 basis points by 4.085 %, according to Dow Jones market data.

“The real question now becomes the number of discounts followed by prices, and from our lenses, it supports the continuous weakness in the labor market our continuous call to a total of 75 basis points to reduce prices by the end of the year,” said Cathy Posteangic, Chief Economist in Nationwide, in e -mail comments.

The possibility of lighting the green interest that reaches an average of 50 basis points in September is close to 10.2 %, according to the CME Fedwatch tool, but it is still 89.7 % to reduce 25 basis points. This is up to the chance of 0 % for the jumbo piece a day ago.

Steve England, the FX global strategic expert at Standard Charterd, earlier this week, prepared a case for the reason for justifying the group’s price reduction this month, on the pretext that markets and policymakers have offended the reading of employment data.

Certainly inflation data next week can shake the narration again, but it seems that the risk of inflation – or high inflation alongside the volatile economy – is not an essential concern for investors.

Jeffrey Schools, head of the economy and strategy strategy at Clearbridge Investments, with “armament” in the labor market, said the risks that can create a potential stagnation have returned to focus. He pointed out that this changed the dialect of the first morning reaction to pull the stocks, as investors began the price in the slower growth and the background of less powerful profits than expected at the beginning.