Shine trader limited reports：
The growing “expectation gap” between bond traders and global central bank governors will face a new test on Friday-the heavy hitting U.S. non-agricultural employment data may reignite or extinguish policy makers’ attempts this week. Downplaying inflation concerns.
The Bank of England unexpectedly stood still on Thursday, culminating in the firm dovish rhetoric of major central banks over the past three days, putting pressure on many aggressive global interest rate hike bets. Short-term yields in many markets fluctuated violently, and after the surge in October, they fell sharply in the first week of November. The U.S. Treasury yield curve also changed from steepening to flattening.
Fed Chairman Powell stated that he will not consider raising interest rates until the job market improves further, which makes various employment data subject to closer scrutiny by the market. A report released by the US Department of Labor on Friday is expected to show that 450,000 new non-agricultural jobs will be added in October, the largest increase since July.
If this employment report or next week’s inflation data is unexpected, it may cause new waves in the bond market.
Volatility is more challenging
”If the non-agricultural employment report is much stronger than expected, then Powell’s argument on Wednesday will be questioned again,” Triple T Consulting Ltd. Managing Director Sean Keane pointed out. He said that the recent volatility of the short-term bond market and its appearance at an inappropriate point at the end of the year have made position deployment and profit and loss management more challenging. “
The volatility of the bond market has caused obvious damage to market sentiment. Investors are deeply dissatisfied with the decision by the Governor of the Bank of England, Andrew Bailey, to keep interest rates unchanged, because he stated that he would take action two weeks ago. The demand for Australian government bond tenders this week was also more than half less than in September.
Reprint indicated source：Spark Global Limited information