Treasuries rallied after private measures of US economic data pointed to a stumbling jobs market, spurring traders to boost wagers that the Federal Reserve will cut interest rates next month.
Yields on US 10-year debt fell eight basis points to 4.08%, while two-year notes — among the most sensitive to changes in monetary policy — dropped to 3.55%. Swaps tied to policy-meeting dates now imply a better than 60% chance of a quarter-point reduction next month, up from around 50% on Wednesday.