US Jobs Rebound Sparks Hike Fears for Fed in September

After a summer of weak readings, the US jobs market has posted solid numbers. American employers added 162,000 jobs in August, about three times what was expected. This strong report has kept the prospect of a September rate hike from the Federal Reserve alive.

The weak summer prints were revised up, with July's reported job losses turning out to be a small gain. The unemployment rate held steady at 4.1% and the participation rate rose in August.

Global yields have continued to rise on the news, lifting the odds of a September rate rise slightly to around 60%. The strong jobs market gives the US Federal Reserve more room to raise rates.