Bond Traders Glimpse Taper-Talk Roadmap That Revives Volatility
- Jobs data leave intact speculation taper discussions to start
- May CPI is a risk after strong April data drove yields higher
Photographer: Thianchai Sitthikongsak/Moment/Getty Images
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Bond investors are confident that the calm engulfing the Treasury market for months will have a limited shelf life.
A report on May job growth that disappointed some traders did spark a burst of short-covering Friday. But it left intact speculation that the U.S. recovery from the pandemic is strong enough to lead the Federal Reserve to finally start discussions this month around the idea of tapering its massive bond-buying program.