(Bloomberg) — Treasuries held losses as data on the US labor market alleviated some anxiety about the economy, pushing traders to pull back further on their expectations for aggressive interest-rate cuts this year.
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The selloff sent Treasury yields higher across all tenors. A rise in long-term yields gained momentum after demand for the sale of $25 billion in 30-year bonds proved paltry, which followed poor interest on Wednesday for an auction of 10-year notes. Rates on two-year notes, which are sensitive to the Federal Reserve’s policy, were up about 8 basis points to 4.04%.
Swaps traders are now pricing in about 103 basis points worth of easing in 2024, with the first reduction still seen in September, after data showed initial applications for US jobless claims fell last week. But expectations for a 50 basis point cut next month have faded.
“The drop in initial filings was larger-than-anticipated, and the…
