Yields, expectations for rate hike rise after jobs report
Yields finished higher in a shortened trading day for the U.S. bond market following a highly anticipated report on the job market
NEW YORK (AP) — Yields rose in the U.S. bond market Friday following a highly anticipated report on the U.S. job market.
The U.S. stock market was closed in observance of Good Friday, as were many markets across Europe. That left the U.S. bond market as one of the few open to react to the latest jobs update, which showed hiring lost a bit more momentum than expected last month but largely remained resilient.
The data was so anticipated because it could offer a big clue for the Federal Reserve, which faces a tough decision on interest rates that will affect the entire economy. Should it keep raising rates in order to drive down inflation that’s still high? Or should it hold off given signs of a slowing economy and stress in the banking system caused by the past year's barrage of rate hikes?
The immediate reaction from the bond market Friday seemed to lean toward another hike. Not only did yields rise for Treasurys, so did bets for the Fed to raise rates by another quarter of a percentage point in May at its next meeting.
