Bond Traders Look to Jobs Data, Stocks for Gut Check on Rally

US bond traders will be watching the trajectory of stocks this week and economic releases such as private payrolls data to see whether the rally in Treasuries has legs.

Benchmark 10-year yields enter the holiday-shortened week at the lowest in months, after haven buying spurred by a tech-driven slide in US stocks. A tame inflation reading on Friday helped extend the bond market’s advance, and left traders leaning toward at least two Federal Reserve interest-rate cuts by year-end.