Bond Market Revival: How a Jobs Shock Sparked a Treasury Surge

Just when bond investors were doubting one of their favorite strategies, it’s making a comeback.

Treasuries surged on Friday as a surprisingly weak US payroll report unleashed a frenzy of buying following a month of bond losses. The data, including downward revisions that trimmed a whopping 258,000 jobs from the tallies in May and June, sent traders piling into fresh wagers on Federal Reserve interest-rate cuts, with futures pricing in 84% odds of a reduction next month and at least two cuts by year-end.