US Treasury bonds have plummeted, and strong non-farm payrolls data prompted traders to postpone their expectations for the Federal Reserve's next rate cut until the second half of the year. The number of non-farm payrolls in the US recorded the biggest increase in nine months in December. The sell-off boosted the yield curve. The 10-year yield rose to the highest level since 2023, the yield on 2-7-year treasury bonds rose by more than 10 basis points, and the 30-year yield rose to 5%. Zachary Griffiths, head of investment grade and macroeconomic strategy at CreditSights, said that after the release of the non-farm payrolls data, treasury bond yields rose, the yield curve flattened, and the market repriced short-term interest rate expectations.” Swap traders expect the Federal Reserve to cut interest rates by a total of 28 basis points this year, compared to around 38 basis points before the data was released. The market expects the next rate cut to be held until around October, not June as previously predicted.