Traders boosted their bets on Federal Reserve interest-rate cuts this year and US Treasuries rallied as a solid report on American jobs failed to calm markets.

Yields on two-year notes traded near their lowest since September 2022 and benchmark 10-year yields were down 11 basis points to 3.92% following the jobs reading amid fallout from US President Donald Trump’s tariffs. Money markets fully priced four quarter-point rate reductions this year and the chance of a fifth — up from just three cuts seen before the levies were announced.