Global bond markets steady after sharp sell-off as weak US jobs data eases fears of further rate rises

From the Newshound archive · first published 3 October 2026.

US stocks rose sharply on Friday after employers added just 29,000 jobs last month, far below expectations, easing fears that a red-hot economy could push inflation still higher. The weak payrolls figure slashed the probability of a Federal Reserve rate hike later this month from 64% to below 21%. The 10-year US Treasury yield had surged from around 4% in February to above 5.2%, its highest level since 2002, as the Iran conflict kept oil prices elevated and inflation fears intensified.

Quant hedge funds have profited handsomely from the bond rout — Graham Capital's Tactical Trend fund had gained more than 31% on the year, while Aspect Capital's flagship fund was up 21%.