The U.S. unemployment rate fell to 3.8% in March, and the market has lowered its expectations for a Federal Reserve rate cut in 2024

The U.S. Bureau of Labor Statistics announced that the seasonally adjusted non-farm employment population in the U.S. was 3.03 million in March, exceeding the expected 2 million and previous value of 2.75 million people. The unemployment rate in the U.S dropped to 3.8% in March, while market expectations remained unchanged at 3.9%. After the release of the non-farm report for March, swap markets lowered their expectations for a Federal Reserve rate cut in 2024. Swap markets have fully priced-in a delay from July to September for when they expect the first Federal Reserve rate cut.