The U.S. private employment data has dropped significantly, and the rise in government bond prices has triggered bets on interest rate cuts.

[Fed Private Employment Data Plummets, Treasury Prices Rise Triggering Rate Cut Bets] After a significant decline in US private sector employment data, US Treasury prices rose in response, prompting traders to increase their bets on the Fed cutting rates this year. Interest rate swap contracts linked to the upcoming Fed meeting date indicate an expected cut of 46 basis points by the end of the year, up from an expectation of 42 basis points before the data was released. Gregory Faranello, head of interest rate trading and strategy at Ameri Vet Securities, stated that the labor market is clearly weakening, and the market's reaction is because the likelihood of an official non-farm payroll report being released on Friday seems low. (Jin10)