Woofun AI reports that weaker-than-expected nonfarm payrolls data has reduced trader expectations for Federal Reserve rate increases, triggering a rally in U.S. Treasuries. The two-year yield, which is highly sensitive to monetary policy shifts, declined 6 basis points to 4.11%, while the 10-year yield fell 2 basis points to 4.46%. Fed funds rate swaps indicate the market now assigns a 20% probability to a rate hike at the upcoming meeting, down from 33% prior to the release.

Additionally, pricing reflects fewer than two 25-basis-point hikes through March 2027.