Treasury Traders Gear Up for US Payrolls to Cement Fed Bets

Bond and currency traders are bracing for Friday’s US employment report, which stands to solidify views on Federal Reserve policy and determine the near-term trajectory of interest rates.

This week’s run of softer-than-expected economic data has reinforced bets on Fed dovishness, pulling 30-year yields back from the brink of 5% while fueling further gains in shorter-dated Treasuries. The dollar has held firm against most currencies in recent days, though it is down about 8% this year.