Strong U.S. job data weaker than expected triggers bond market rebound, with the 10-year U.S. bond yield hitting a three-week low.

According to Tradeweb data, US Treasury yields fell during the Asian trading session, with the yield on the 10-year US Treasury hitting a three-week low of 4.156% overnight before rebounding slightly. The latest trading price for the 10-year US Treasury yield is 4.189%, still down 2 basis points intraday. The recent decline in US Treasury yields follows signs of weakness in the US labor market, opening the door for the Federal Reserve to cut interest rates sooner than expected. Samuel Tombs and Oliver Allen, macroeconomists at Pantheon Macroeconomics, stated in a report that "December's JOLTS report suggests that it is too early for the Federal Reserve to conclude that the labor market has turned a corner." According to LSEG data, the market currently estimates a 23% probability of the Federal Reserve cutting interest rates by 25 basis points in March.