US Jobs Data May Shape Fed Rate Outlook Amid Rising Treasury Yields

The upcoming US jobs data is expected to shape the Federal Reserve's rate outlook as Treasury yields continue to climb.

Next week, the Bureau of Labor Statistics will release its September jobs report, showing a slowdown in hiring with an estimated 100,000 new jobs added versus 162,000 in August.

Economists polled by Reuters expect the US unemployment rate to rise to 4.2 per cent in September from 4.1 per cent in August, but Bank of America strategists forecast just 60,000 new jobs and steady unemployment at 4.1 per cent.

This would ease pressure on the Fed to raise rates again in October, following last month's quarter-point increase to a range of 3.75 per cent to 4 per cent.