Treasury bonds tumbled, particularly shorter-dated issues, following unexpectedly robust US employment figures. Traders, reacting to the better-than-anticipated jobs report, scaled back bets on the Federal Reserve reducing interest rates this year. The sharp sell-off in shorter maturities, such as two-year notes, reflected heightened expectations that the central bank will maintain higher borrowing costs for longer.

This shift underscores the market's recalibrated view of the Fed's policy trajectory amid persistent inflation concerns. Shorter-dated Treasuries saw the most significant losses as investors priced in a prolonged period of elevated rates. The move signals a potential tightening of financial conditions and could impact borrowing costs for businesses and consumers.