Bond Traders Buckle Up for ‘No Landing’ After Jobs Surprise
- Strong growth in payrolls sends Treasury yields surging
- Risk is that growth, inflation keep Fed cuts in check
Workers unload bar-in-coil steel from a freight ship at the Port of Detroit in Detroit, Michigan.
Photographer: Matthew Hatcher/BloombergThis article is for subscribers only.
The “no landing” scenario – a situation where the US economy keeps growing, inflation reignites and the Federal Reserve has little room to cut interest rates – had largely disappeared as a bond-market talking point in recent months.
It only took a blowout payrolls report to revive it.