Traders raise bets on September start to Fed rate cuts

Traders added to bets that the U.S. Federal Reserve will deliver its first interest rate cut this year in September, after a government report on Friday showed U.S. job growth slowed more than expected in April and annual wage gains cooled.

Interest-rate futures prices pointed to about a 78% probability of a rate cut at the U.S. central bank's mid-September meeting, up from about 63% before the report.

Traders are also now pricing in two rate cuts of 25 basis points this year versus one before the payrolls data was released.