‘Tough Week’ Leaves Bond Traders Girding for Another Key Stretch
- Yields marched toward multiyear highs before Friday reversal
- Next week, auctions, CPI data to be pivotal for market’s path
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Bond traders who just navigated their rockiest stretch in months will get little respite in the days ahead, which bring the biggest Treasury refunding slate since last year and a pivotal inflation reading.
It’s a potentially decisive period for the world’s biggest bond market, which has started to lean toward a bet that the Federal Reserve is done hiking interest rates. Buyers emerged Friday on signs US job growth is slowing, pulling yields back down from a test of multiyear highs.