Bloomberg (October 7)
“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.” After “setting up for slowing growth,” traders are undergoing another “wrenching recalibration” on the heels of a “blowout” jobs report “showing the fastest job growth in six months, a surprising drop in US unemployment and higher wages.” Treasury yields surged and investors are “furiously reversing course on bets for a larger-than-normal half-point interest-rate reduction.”
Tags: Blowout, Bond market, Economy, Fed, Growing, Inflation, Interest rates, Jobs, No landing, Recalibration, Scenario, Traders, Treasury yields, U.S., Unemployment, Wages
