Treasuries Head Lower Ahead of Jobs Report as Market Doubts Fed
- Traders look to jobs report for signs of inflation pressures
- Global bonds tumble, pushing Italy risk gauge to two-year high
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Treasuries extended declines on concern that U.S. jobs data will show the Federal Reserve needs to be more aggressive with rate hikes to contain inflation.
U.S. 10-year yields rose four basis points to 3.07%, having closed above 3% for the first time since 2018 Thursday. European bonds also slid on expectations for rate hikes, pushing the premium for Italian debt over Germany above 200 basis points for the first time in two years.