Yesterday, the private ADP weekly data showed the U.S. economy shed on average 11,000 jobs per week, suggesting the labor market remains weak. This has pushed Treasury markets higher as traders foresee increased chances of a Federal Reserve rate cut in December.

The current expectation priced in by the markets is around a 70% chance of a Fed rate cut, driving the bid for Treasury bonds and pushing yields down.

Yes, absolutely, the weaker job market data is a core driver for the Treasury rally and lower yields in the short term.