The seasonally adjusted non-farm payrolls in the United States in August were 142,000, the largest increase since June this year, with an expected 160,000, and the previous value was revised from 114,000 to 89,000. The unemployment rate in the United States in August was 4.2%, with an expected 4.20% and a previous value of 4.30%.
After the release of the non-farm payrolls data, traders increased their bets that the Federal Reserve will implement a 50 basis point rate cut in September. Traders expect a 50% chance of a 50 basis point rate cut by the Federal Reserve this month. The money market slightly raised its expectations for a rate cut by the European Central Bank, and now expects the European Central Bank to cut interest rates by 64 basis points this year, compared with the previous expectation of 62 basis points.
Analyst Sebastian Boyd said the market believes that these data have cleared the way for a big rate cut. After the non-farm payrolls growth was lower than expected, the two-year yield fell to its lowest point since August 5. Data for the previous two months were revised down by 86,000, which means the labor market is much weaker than thought.
