US Treasury yields fell on Thursday as market participants absorbed a June jobs report that came in weaker than consensus estimates.
The data reinforced the prevailing view that the Federal Reserve is likely to move sooner than previously anticipated to ease monetary policy.
The retreat in yields reflects a rapid repricing of rate expectations.
Traders are adjusting their positioning to account for a higher probability of near-term rate cuts, driven by the softening labor market indicators.
This shift underscores the sensitivity of the bond market to employment data as a leading indicator of Fed policy direction.
The development adds to a growing narrative of economic cooling.