The upper, solid line shows the path of expected funds rates as of the market close on the next day, April 2. As you probably know, the payroll employment numbers announced on April 2 significantly exceeded market expectations.
Figure 3 shows that the payroll data seems to have caused the market to price in an expectation of a higher federal funds rate target over the entire policy horizon. Of course, that change in policy expectations is consistent with the significant rise in Treasury yields that occurred after the employment report. Observing market expectations of policy provides useful feedback to the policymakers.