For Bond Traders, Stocks Are All That Truly Matters in Jobs Week
- Tech tumult has U.S. 10-year yield at seven-week low
- Flat curve signals little angst over latest labor-market data
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The U.S. jobs report was already playing second fiddle to inflation data in the minds of bond traders. But after last week’s turbulence in technology stocks, it almost feels like an afterthought.
Benchmark 10-year Treasuries are coming off their biggest rally of 2018, with yields at seven-week lows. This time, it wasn’t geopolitical risk fueling the gains, or even weak inflation figures (the Federal Reserve’s preferred gauge, in fact, beat analysts’ estimates). Rather, it was investors seeking refuge from the volatility in equity-market darlings such as Amazon.com Inc., Facebook Inc. and Tesla Inc.