Bond Investors Eye Fed Interest Rate Policy and Employment Data
While expectations that the Fed will continue interest rate hikes gain weight in the markets, France's budget steps and US employment data are being monitored.
Bond investors are taking strong positions amid expectations that the US Federal Reserve will raise interest rates in the upcoming period, while France's new budget regulations and employment data from the US are being closely monitored by global markets.
Fed's Interest Rate Policy and Bond Market
While bond investors are taking strong positions that the Fed will further raise interest rates in the coming period, the expected slowdown in employment growth is not expected to significantly change the outlook.
Fed officials Michelle Bowman and Philip Jefferson stated that policymakers need more time before deciding whether additional interest rate hikes are necessary.
Expectations for US Employment Data
According to estimates by economists participating in a Bloomberg survey, the data to be released in the US is expected to show non-farm payrolls increasing by approximately 90,000 in September.
The employment growth recorded in the previous month stood at 162,000.
France's Budget Regulations
The French government announced a comprehensive budget arrangement totaling 54 billion euros in order to control debt and financing costs.
The government aims to reduce the budget deficit from 5.4 percent of GDP this year to 5 percent by 2027.
Sell-off Wave in Markets
Following the statements by Fed officials, the sell-off wave seen in the US bond market eased as of Thursday.
Market participants continue to closely monitor the new data to be released and economic developments.