A firmer-than-expected U.S. June jobs report leads Goldman Sachs economists to bring forward their Fed rate-cut expectations and lower the terminal rate, pointing to a lower range for U.S. yields across the curve.

The dollar strengthened as U.S. labor markets looked better than investors feared. June payroll data supported expectations the Federal Reserve wouldn’t cut interest rates.

The stronger-than-expected June jobs report has been a boon for the buck. The ICE U.S. Dollar Index was up 0.5% in recent trade at 97.27 after the greenback rallied hard against its rivals following the release of Thursday's June jobs data.