‘No Landing’ After Jobs Surprise?
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.
It only took a blowout payrolls report to revive it.
Data showing the fastest job growth in six months, a surprising drop in US unemployment and higher wages sent Treasury yields surging and had investors furiously reversing course on bets for a larger-than-normal half-point interest-rate reduction as soon as next month.
The 10-year breakeven rate, a measure of bond traders’ inflation expectations, reached a two-month high, rebounding from a three-year low in mid-September.
Bloomberg 7 October 2024
Tillbaka till Wall Street och Stockholm 7 oktober 2024
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