The stability of U.S. Treasury bonds cannot hide the concerns over deficits, as the market holds its breath waiting for the non-farm payrolls to determine the interest rate cut path

The rise of U.S. Treasury bonds has stabilized, with investors remaining cautious ahead of the non-farm payroll report and reducing bets on Federal Reserve rate cuts. Although the yield on the two-year Treasury bond has slightly increased, traders still expect the Federal Reserve to cut rates twice. The market is focused on the issue of the U.S. fiscal deficit, which affects the performance of Treasury bonds. Analysts point out that economic data has not triggered recession concerns, but fiscal issues will hinder a rebound. The 10-year yield is expected to fluctuate between 4.25% and 4.75%