Bond, Dollar Traders Won't Let Missiles Distract Them From Fed
- Market is focused on week’s key data to gauge rate-hike odds
- ‘Tough to get much lower’ yields, Charles Schwab’s Jones says
Dan Fuss Says Geopolitical Tensions Make Fed Action Tough
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North Korea’s latest missile launch may have ratcheted up geopolitical tensions to a new level, but for bond and currency traders, the primary focus is still on U.S. monetary policy.
Sure, 10-year Treasury yields sank to the lowest this year on Kim Jong Un’s provocation, while the dollar touched the weakest level since January 2015. But the episode may wind up being more of a distraction for traders, with crucial U.S. inflation and labor data ahead that could dictate the path for the Federal Reserve and financial markets for months to come.