All to play for then.
And the latest Fed soundings indicate that the screaming rise in Treasury yields to new 16-year highs close to 5% – a jump of at least half a percentage point in 10-year rates – may have achieved the sort of additional credit tightening that obviates the need for another Fed policy rate hike.
San Francisco Fed boss Mary Daly said that with monetary policy “well into” restrictive territory and Treasury yields so high, the central bank may not need to raise rates further.
All of which sees U.S. bond yields retain an uneasy calm into the jobs numbers. Ten-year yields hovered about 4.75% on Friday – still off Tuesday’s peak at 4.88%.
Implied rates from Fed futures markets pulled back the chances of another hike in the cycle to less than 50%.
Seeing some potential light at the end of the tunnel, Wall St stocks staged a late comeback close to opening levels on Thursday and stock futures were steady ahead of today’s open.
The dollar stayed on the back foot for now too.
The other side of the bond market angst – U.S. fiscal policy stasis and the prospects of a government shutdown again next month – remained unresolved as Republicans moved to appoint a new House speaker after their unprecedented ouster of Kevin McCarthy from the post this week.
Former President and leading candidate for next year’s White House race Donald Trump said he’s endorsing Congressman Jim Jordan for the post – an appointment that won’t encourage any bets on congressional compromises to avert a shutdown.
And that mixed picture of fiscal dysfunction and a potential economic hiatus from furloughing thousands of government workers is the backdrop to Treasury secretary Janet Yellen‘s trip to the annual International Monetary Fund and World Bank meetings in Morocco next week.
Elsewhere in the corporate world, shares of Tesla fell 1.47% to $256.22 premarket after the electric vehicle giant stepped up its aggressive discounting and cut prices of its Model 3 and Model Y vehicles in the U.S. by about 2.7% to 4.2%.
In M&A news, Exxon Mobil is in advanced talks to acquire Pioneer Natural Resources in a deal that could value the Permian shale basin producer at about $60 billion, people familiar with the matter said on Thursday.
