Bond Traders Follow Fed’s Lead With No Let-Up in Inflation Fight

  • Treasury yields rose Friday as jobs data keeps pressure on Fed
  • Fed speakers dash speculation of a pivot by the central bank
WATCH: Jeffrey Rosenberg of BlackRock says the “disappointing” US jobs report reinforces the Fed’s hawkish approach to policy. Source: Bloomberg
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Bond traders are learning to follow the oldest rule in the book: don’t fight the Fed.

While Treasury yields have seen periodic pullbacks on hope the central bank will ease up on its rate hikes, they have been short-lived as central bank officials stick to their hawkish script. On Friday, a fresh round of selling broke out after the monthly jobs report showed that the unemployment rate unexpectedly fell as payrolls continued to expand at a solid pace.