The US financial market, already reeling from a challenging September, faces another test as the Labour Department revealed an unexpected spike in job openings for August. Contrary to widespread beliefs that the employment scenario was easing and thus exerting less upward strain on wages, this recent data suggests otherwise. The ensuing anxiety among traders is heightened by concerns that the central bank might be compelled to maintain a stringent monetary policy. These apprehensions gained further traction this week when at least four policymakers either supported rate hikes or hinted that elevated rates could remain for a prolonged period. Amidst these developments, both the 10- and 30-year government debt instruments saw yields surge to levels last observed during the prelude to a financial crisis.

While transitioning to a more conventional rate structure might not seem daunting on the surface, it marks a significant shift from what has become the new normal. Before the financial downturn, the 10-year Treasury yield averaged approximately 7%, a figure influenced by the record rate hikes in the early 1980s. However, after nearly 15 years of experiencing extraordinarily low rates, even a return to ‘normalcy’ can seem out of the ordinary for many.

Source : https://www.researchandmarkets.com/issues/us-financial-market-faces-pressure-after