Bond Traders Focus on the Fed’s Inflation Fight Even Amid Omicron Fear
- Yields plunged Friday as worrying new virus variant emerged
- But experts see Federal Reserve still focused on higher rates
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Bond investors ended a tumultuous Thanksgiving week with a reminder that Covid, not just the degree of Federal Reserve hawkishness, is still able to stir up markets around the globe.
But after the dust kicked up by the latest worrying coronavirus variant news settles down, Treasuries look most likely to be driven by this: the central bank fighting inflation in 2022 by getting more restrictive with monetary policy.