Bond Investors Warn Fed Pause Risks
Global bond markets face potential turmoil as investors warn that holding interest rates steady could cause a deeper selloff and drive long-term borrowing costs higher. While a rate hike would boost costs, analysts argue pausing risks undermining central bank credibility on inflation.
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United States bond markets face a pivotal test this week as investors weigh a likely Fed rate hike against warnings that standing pat could trigger a deeper selloff. Markets currently price in a 76% chance of a quarter-point increase following stronger-than-expected August inflation and jobs data.
