Analyst: Strong non-farm payrolls weaken rate cut bets; the Federal Reserve forecasts no rate cuts until June.

MeNews · 2026-04-03T15:20:58+00:00

Due to strong U.S. labor market data, market expectations for the Federal Reserve to cut interest rates have diminished, leading to a decline in U.S. Treasury prices and rising yields. Experts believe the Federal Reserve may keep interest rates unchanged until the end of June or even longer.

MeNews

2026-04-03 15:20:58

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ME News message, April 3 (UTC+8). Due to strong U.S. labor market data, the market has reduced its expectations for the Federal Reserve to cut rates this year. U.S. Treasury prices fell, pushing yields up by 3 to 5 basis points, with the two-year Treasury yield that is sensitive to policy leading the gains. The market’s prior expectation for the Fed easing monetary policy this year was only around 1 basis point, while it was about 4 basis points before the report was released. David Robin, rates strategist at TJM Institutional Services LLC, said the Federal Reserve is “very likely to keep interest rates unchanged through the end of June, and possibly even longer.” He added: “These are data before the outbreak of the conflict, but even so, they show a higher (rate-cut) baseline.” (Jin10) (Source: ODAILY)

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