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No Escape From Biggest Bond Loss in Decades as Fed Keeps Hiking

  • Swaps show slight tilt toward a 75-basis-point hike this month
  • BlackRock’s Rick Rieder sees more upside for 10-year yields
The Marriner S. Eccles Federal Reserve building in Washington, D.C.

The Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Graeme Sloan/Bloomberg

Investors who might be looking for the world’s biggest bond market to rally back soon from its worst losses in decades appear doomed to disappointment.

The US employment report on Friday illustrated the momentum of the economy in face of the Federal Reserve’s escalating effort to cool it down, with businesses rapidly adding jobs, pay rising and more Americans entering the workforce. While Treasury yields slipped as the figures showed a slight easing of wage pressures and an uptick in the jobless rate, the overall picture reinforced speculation the Fed is poised to keep raising interest rates -- and hold them there -- until the inflation surge recedes.