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Home » Traders continue to bet on a rate cut
Finance

Traders continue to bet on a rate cut

adminBy adminDecember 4, 2025No Comments2 Mins Read
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Traders work during the opening of the New York Stock Exchange (NYSE) market on November 18, 2025 in New York City.

Spencer Pratt | Getty Images

U.S. Treasury yields rose on Thursday as investors awaited further economic data and maintained expectations that the Federal Reserve will cut interest rates next week.

The 10-year Treasury yield rose more than 2 basis points to 4.087%, and the 30-year Treasury yield rose more than 1 basis point to 4.743%. The yield on the two-year U.S. Treasury rose more than 2 basis points to 3.512%.

One basis point equals 0.01%, and yields and prices move in opposite directions.

Investors are pondering the current state of the labor market this week. On Thursday, the Labor Department reported 191,000 jobless claims for the week ending Nov. 29, the lowest level since September 2022. This was 27,000 fewer than the previous quarter and below the Dow Jones forecast of 220,000.

This data stands in contrast to other recent reports pointing to weakness in the labor market.

Wall Streeters are still digesting the stunning drop in Wednesday’s private jobs report, which showed private companies cutting 32,000 jobs. Economists polled by Dow Jones had expected the number of jobs to rise to 40,000 in November.

This has led to widespread expectations that policymakers will cut interest rates at the Federal Open Market Committee meeting on December 9-10. Traders are currently pricing in a quarter-point decline, according to the CME FedWatch tool.

The ISM Services PMI released after the ADP report showed a slight increase in print at 52.6%, higher than the Dow Jones forecast of 52.5%, raising expectations that the US economy is stable.

Investors will focus on other economic reports this week, including the delayed September Personal Consumption Expenditure report and Friday’s Michigan consumer confidence forecast.



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