Short-Sellers Hold Higher-Yield Bets Ahead of Friday US Jobs Report as Oil Lifts Inflation Fears
Updated
Updated · Bloomberg · Jun 3
Short-Sellers Hold Higher-Yield Bets Ahead of Friday US Jobs Report as Oil Lifts Inflation Fears
3 articles · Updated · Bloomberg · Jun 3
Summary
Friday’s US employment report is the next major test for Treasuries, with short-sellers still positioned for yields to rise despite trimming some of their most extreme bearish bets.
Higher oil prices and inflation running above target have driven the recent bond selloff, pushing benchmark yields sharply higher and reviving expectations for Federal Reserve rate hikes as soon as this year.
Hopes for a US-Iran resolution have softened the market’s most negative tone, but traders remain broadly defensive heading into the payrolls data.
The jobs figures now loom as a key catalyst that could either reinforce the case for tighter policy or force investors to unwind some bearish bond positions.