Treasury Yields Surge as Jobs Spark Rethink on Fed: Markets Wrap
- Strong US payrolls and wage growth push back bets for Fed cuts
- Traders no longer fully price in rate cut before December
Bloomberg:
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The world’s biggest bond market got hammered as a solid US jobs report made traders dial back their bets on Federal Reserve rate cuts.
A selloff in Treasuries drove yields up over 10 basis points, with swaps no longer pricing in a Fed reduction before December. Nonfarm payrolls advanced 272,000 — beating estimates — and wages accelerated. The unemployment rate increased to 4%. Equities closed well off session lows as the data helped quell fears about an economic slowdown that could hurt Corporate America.