UBP flags higher bond yields as strong US jobs data rekindles inflation worries
TLT•Bond yields rise as jobs data and tensions revive inflation concerns
Union Bancaire Privee flagged higher global bond yields as strong US jobs data revived inflation risk amid escalating US-Iran tensions.
August nonfarm payrolls rose 162,000 versus 55,000 expected; wage growth eased to 3.1% y/y; unemployment held at 4.1%.
10-year yields rose about 6 bps on the week; Treasuries ended at 4.78%, Bunds at 3.34%, gilts at 5.13%.
Brent climbed 7.8% to just over USD 96; energy-led inflation lifted eurozone headline CPI to 3.3% y/y, core eased to 2.4%.
Markets priced a 60% chance of a 25-bp September Fed hike; ECB seen raising 25 bps to 2.5% this week.
