This May’s non-farm payroll data completely shattered the market’s rate-cut expectations. Not only did it add 172,000 jobs, far exceeding expectations, but the data for March and April was also revised upward by a total of 93,000, confirming that the U.S. labor market is much stronger than expected. The market has shifted from betting on rate cuts to pricing in the possibility that the Federal Reserve may further tighten monetary policy; the 10-year U.S. Treasury yield promptly jumped by 4.7 basis points to 4.524%. The rise in risk-free returns directly drained liquidity from risk assets.