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Bond traders say rally hinges on jobs data at risk from shutdown
Yahoo Financeยท 2025-09-28 19:00
Group 1 - The upcoming US jobs report is critical for bond investors, as it may influence expectations for a Federal Reserve interest-rate cut in October [1][2][3] - Traders have reduced their bets on further Fed easing due to mixed signals from officials and stronger-than-expected economic data [2][3] - A potential federal government shutdown starting October 1 could delay the release of key economic data, including the employment figures [2] Group 2 - The Federal Reserve lowered rates for the first time this year due to a softening job market, with an approximately 80% chance of another cut at the upcoming meeting [3][4] - Ten-year Treasury yields rose towards 4.2% after previously hitting a five-month low, influenced by recent economic data showing a decline in initial jobless claims [5][6] - Treasuries have gained 5.1% this year, positioning the market for its best performance since 2020, despite inflation remaining above the Fed's 2% target [7]