Treasury Yields Tumble as Wagers on September Fed Rate Cut Grow

Treasury yields tumbled after weaker-than-expected gauges of job creation and service-sector activity strengthened traders’ conviction that the Federal Reserve could cut interest rates as soon as September.

Two- to 10-year yields reached the lowest levels since at least May 9 after the ISM Services gauge for last month signaled contraction for the first time in a year. The bond market added to earlier gains unleashed by ADP Research data showing that private-sector job growth was the weakest in two years. The US government’s broader employment data for May, to be released Friday, is expected to show deceleration also.