Treasuries Slide as Strong US Labor Data Resets Fed-Cut Bets

Treasuries fell, led by shorter maturities, after stronger-than-expected US employment data prompted traders to trim expectations for Federal Reserve interest-rate cuts this year.

The move pushed yields broadly higher on Wednesday after the report, with the two-year — which is most sensitive to the central bank’s policy changes — jumping as much as 9.5 basis points to 3.55%, before paring back to 3.5%. Benchmark 10-year yields were up around 2 basis points to 4.16% after a $42 billion auction of the securities saw demand fall short of expectations.