Citigroup has lowered its expectations for an interest-rate cut at the U.S. Federal Reserve's December meeting, joining peers in predicting a 25-basis-point reduction, following robust nonfarm payrolls data.

TLT traded mostly flat in the hours following Friday’s jobs report, while traders boosted the odds of a rate cut at the Fed's final meeting of 2024 to 85% following the economic data release. The probability of a rate pause in January ticked up to 63%.

The dollar was edging lower as investors bet on the Federal Reserve cutting interest rates further this month, Swissquote Bank analyst Ipek Ozkardeskaya said in a note. Friday's nonfarm payrolls data

For many investors, Friday's jobs report confirmed expectations that the Federal Reserve is on track to cut interest rates

"The report was not quite soft enough for the Fed to cut 50bp as we had projected for December, but a 25bp cut in December appears very likely," the analysts in a note dated Dec. 6

The conventional wisdom among economists and traders is that the Federal Reserve is going to cut its benchmark interest rate by another quarter of a percentage point on Dec. 18, and then pause at its first meeting in 2025.

The Federal Open Market Committee is most likely to cut interest rates again on December 18 to 4.25% to 4.5%, according to fixed income markets.

Friday's jobs report virtually cements that the Federal Reserve will approve an interest rate cut when it meets later this month.

The Federal Reserve will almost certainly slash interest rates at its December meeting. Friday’s jobs report sealed the deal, offering the Fed enough breathing room to act without looking reckless. Nonfarm payrolls rose by 227,

Markets widely anticipate the Federal Reserve to cut US interest rates later this month, with officials' concerns on inflation expected to affect the pace of reducing policy next year. Recent rate-cut optimism stems from Friday's US unemployment report,

CNBC's Steve Liesman joins 'Squawk on the Street' to break down the November jobs report.