US Rate Path Faces Test as Jobs Report and Inflation Data Loom
The upcoming jobs report and inflation data are set to test the US rate path and economic strength. The September employment report is expected to show a growth of 100,000 jobs, while the personal consumption expenditures (PCE) price index will offer insight into inflation trends.
The PCE index has been closely followed by the Federal Reserve, which began raising interest rates this month for the first time in three years. A blowout jobs report last month solidified expectations that the Fed would raise rates again before the year is out.
However, some experts warn that rising US bond yields and a narrowing market could pose risks to the rally. The 30-year Treasury yield has reached its highest level in over 20 years, and the benchmark 10-year yield rose well above the closely watched 5% threshold.