Bond Market Gets Double-Dose of Mystery With Storm-Impacted Jobs
- Inflation missed again, now traders expect deflated payrolls
- Weak jobs number more likely to be market-moving, SocGen says
Floodwaters from Hurricane Harvey surround a fuel pump at an Exxon Mobil Corp. gas station in Houston, Texas, U.S., on Wednesday, Aug. 30, 2017. Unprecedented flooding from the Category 4 storm that slammed into the state's coast last week, sending gasoline prices surging as oil refineries shut, may also set a record for rainfall in the contiguous U.S., the weather service said Tuesday.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
First, bond traders had to deal with stubbornly low inflation, which Federal Reserve Chair Janet Yellen called a “mystery.”
This week they’ll have a second puzzle to solve: how to trade a jobs report that analysts predict will be weak due to the havoc wrought by Hurricanes Harvey and Irma.