Bond traders pay attention to employment data and the situation in the Middle East

According to Sina Finance, bond traders are focusing on this week's key employment report to assess whether the US economy is strong enough to push the Federal Reserve to raise interest rates before next year. The monthly employment data released on Friday is expected to show that the labor market remains resilient in May. High oil prices and accelerating inflation may affect the policy stance of the Federal Reserve in its June statement. Traders expect the Federal Reserve to raise interest rates before mid-2027, as the Iran War has led to soaring energy prices and tightened financial conditions, equivalent to a Fed rate hike of about 75 basis points.