Weaker-than-expected job creation and consumer confidence data in the US have brought down yields on the US Treasury debt market.
Treasuries are now pricing in a lower likelihood of another Federal Reserve rate hike this year, with yields at their lowest levels in more than a week.
The two-year yield, which is more sensitive to Fed decisions, sank nearly 16 percentage points to 4.89%, the lowest level since Aug. 14. Yields on longer maturities also fell to their lowest levels since the first half of August.
Rate swaps linked to Fed meeting dates traded at levels consistent with lower odds of a rate hike this year, and higher chance of a cut in the first half of 2024.
The rate implicit in the November contract signals around a 60% chance of an increase, up from 75% on Tuesday.