US Treasuries Slide As Strong Jobs Data Revives Fed Hike Bets
· Business · Bloomberg, FXStreet, Reuters
US Treasuries fell after August job growth came in stronger than forecasts, pushing traders to raise bets that the Federal Reserve will deliver an interest rate hike at its September meeting. The bond selloff reflects a sharp repricing of Fed expectations after a labour-market print that suggested the US economy still has momentum. Bond yields climbed across the curve as traders unwound bets on near-term rate cuts. The shift marks a reversal from earlier expectations of monetary easing and raises the stakes for the Fed's upcoming policy decision.
Why it matters
Higher US Treasury yields pull capital into dollar assets and typically pressure the rupee, Indian equity valuations and FPI flows into Indian debt and stocks. Indian borrowers with dollar exposure and consumers tracking home loan and external benchmark rates feel the ripple effects of a hawkish Fed.
Read the original report — Bloomberg
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