Economics
El-Erian Warns Bond Traders Not to Count Out September Fed Hike
- Treasuries tumble as July employment gains exceed forecasts
- Bill Gross says Fed more likely to focus on global conditions
El-Erian: Global Influence Seen in U.S. Yield Curve
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Allianz SE’s Mohamed El-Erian said bond traders underestimate the likelihood that the Federal Reserve will raise interest rates next month after a surge in U.S. hiring bolstered the case for tighter monetary policy.
Treasuries tumbled Friday after Labor Department data showed U.S. job gains exceeded forecasts in July. Still, fed funds futures are pricing in only about a 26 percent probability that officials led by Fed Chair Janet Yellen will raise rates in September, following liftoff from near zero last year.