Just a day before the Federal Reserve decision, a stronger-than-expected report on the labor market caused a drop in bond prices, leading traders to lower their predictions for interest-rate cuts. The decline in Treasury bonds was particularly noticeable for shorter-term maturities following a report known as JOLTS, which revealed that job openings in the US unexpectedly reached a three-month high. While this data is not as influential as the US jobs report, it raised concerns about a possible positive surprise in Friday’s payrolls. Fed swaps reduced the likelihood of a rate cut in March to approximately 35%. In the meantime, stock prices fluctuated as investors awaited the earnings results from two major tech companies, Microsoft Corp. and Alphabet Inc., both of which have been driving the market rally.
