Soft US September Jobs Report Eases Federal Reserve Rate Hike Expectations

A weaker-than-expected US September employment report, showing nonfarm payrolls rising by only 29,000 against an expectation of 84,000 and an uptick in the unemployment rate to 4.2%, has tempered expectations for further Federal Reserve rate hikes. The implied probability of an October hike significantly decreased, aligning with views that the next Fed hike, if any, would likely occur in December. This data has influenced Treasury yields and global equity markets.