U.S. labor market slows further as markets increase Fed rate cut bets

U.S. bond yields fell after data showed a further slowdown in the U.S. labor market, boosting Wall Street's bets on a Fed rate cut. U.S. bonds climbed across the board after the report showed U.S. job openings fell in July to their lowest point since early 2021 and layoffs increased. Fed interest rate swaps suggest the Fed will ease monetary policy further in 2024. Chris Larkin of Morgan Stanley E*Trade says: “Markets may not be as nervous as they were a month ago, but they are still looking for evidence that the economy hasn't cooled off too much. So far this week, they haven't gotten confirmation.