Municipals sold off Thursday, following U.S. Treasury losses after more economic data suggested the U.S. economy is strong enough to potentially warrant more rate hikes in the fall. Equities ended down. Ahead of Friday’s jobs report, Wall Street is “watching a global bond market selloff get uglier as U.S. stocks waver ahead of massive earnings from Apple and Amazon,” said Edward Moya, senior market analyst at The Americas OANDA. Coupled with the Bank of England signaling more tightening is ahead, recent economic data has confirmed the U.S. economy remains resilient, he said, which fanned more concerns over Fed policy uncertainty. “Both initial jobless claims still remain low and the ISM services employment component supports the argument that the Fed might need to deliver more tightening in November,” he noted.
Source: The Bond Buyer
