US10Y above 5% Brings Cheers from Bond Managers Amid Key Economic Data Releases
Long-time bond managers are pleased to see the US10Y above 5%, driven by 'real returns'. This week, key economic data will be released, including the August 26 Core PCE and September 26 monthly jobs report. The nonfarm payroll report is expected to show 90k to 100k new jobs created in September.
The rise of the US10Y has been seen as a positive development by some bond managers, who value 'real returns'. This refers to the return on investment that accounts for inflation, rather than just nominal gains. The current level of the US10Y is above 5%, which is why these managers are pleased.
The upcoming data releases will provide insight into the state of the US economy and may influence market expectations about interest rates. The Core PCE, a measure of inflation, and the nonfarm payroll report are both important indicators of economic health.