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Opinion
John Authers

A Tantrum Could Be Brewing Ahead of Payrolls

Plus: The risks of Farage’s latest referendum idea on the green agenda, and where a random walk will take you these days.

Strong wages data in the payroll report, or a high inflation reading next week, could scare the bond markets more.

Strong wages data in the payroll report, or a high inflation reading next week, could scare the bond markets more.

Photographer: Luke Sharrett/Bloomberg
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The Federal Reserve spent much of last year trying to avoid a repetition of the 2013 “taper tantrum,” when bond yields shot higher after the central bank started to discuss tapering off its asset purchases. It might have succeeded too well. As 2021 ended, yields were barely any higher than they’d started, and inflation was at its highest in decades.