Global markets remain nervous while waiting for the release of February’s Nonfarm Payrolls data. The data will be closely followed as markets try decipher the Fed’s next policy action.
Consensus is 225,000 for February payrolls, half January’s explosive pace. A smaller number could further prompt market’s expectations back to a 25bps hike. US treasury yields trade higher, following hawkish commentary from Fed chair Powell. Powell’s comments sent markets into a frenzy with yields on 2 year USTs touching a whopping 5.085%.
Markets are now pricing a 76% probability of a 50bps hike at this month’s FOMC meeting, up from around 25% last week.