US futures price out even one 2025 rate cut

LONDON, Jan 13 (Reuters) - U.S. interest rate futures on Monday were no longer fully pricing in even one rate cut this year from the Federal Reserve, after bumper monthly jobs data on Friday underscored the resilience of the world's largest economy.

Futures showed traders were pricing in just 24.26 basis points' worth of cuts by December this year, from around 43 bps before the jobs figures 0#USDIRPR.

Data on Friday showed 256,000 workers were added to U.S. nonfarm payrolls in December, well above expectations for a rise of 160,000 and the fastest pace of growth since last March.

Traders have been increasingly reeling in their bets on how much the Fed might cut rates from their current 4.25-4.50% range, which in turn has boosted the dollar =USD against most other major currencies.

A selloff this month in government bonds on the back of expectations of higher inflation and higher borrowing costs ahead has pushed up Treasury yields US10YT=RR and added to the conviction among investors that the Fed may not have as much room to cut rates as previously expected.

(Reporting by Amanda Cooper; Editing by Harry Robertson)

((amanda.cooper@thomsonreuters.com; +442031978531; Bluesky: @acoops.bsky.social;))