The head of institutional strategy: The market believes that the Fed's "interest rate cuts are lagging behind the situation" and is expected to cut interest rates in September

U.S. Treasury yields, from two- to seven-year maturities, all fell by at least 10 basis points, signaling a Fed whose rate cuts are lagging behind the curve. Gregory Faranello, head of U.S. interest rate trading and strategy at AmeriVet Securities, said, "We expect the Fed to start cutting rates in September." He added, "It's somewhat surprising that just a few days ago the Fed chairman was hinting at a strong labor market, only to see this kind of employment data in the blink of an eye."