Most Turbulent Bond Market Since 2009 Braces for Fresh Jobs Jolt
- Rates volatility has surged amid angst over Fed hikes
- Fed wants to slow still-tight labor market to cool inflation
An office building on Third Avenue in New York.
Photographer: Amir Hamja/BloombergThis article is for subscribers only.
The bond market is bracing for more turbulence as a crucial reading on the still-tight US labor market is set to give traders a chance to reassess the Federal Reserve’s commitment to its aggressive path of interest-rate hikes.
Fed officials underscored their focus on the domestic economy in the past few days, even after chaos in UK markets forced the Bank of England to intervene to preserve financial stability. Against that backdrop, Friday’s release of US September job figures looms as a test of the Fed’s plan to rein in inflation by tightening policy further and unwinding its mammoth balance sheet.