Published Sep 8, 2026, 12:26 AM ET · Updated 2 months ago · 1 source

Market prioritizes Fed risk over growth due to two-year yield jump

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Original Report

The significant jump in the two-year yield compared to the 10-year after the payrolls report indicates that the market is prioritizing Fed risk over stronger growth, because the two-year yield is more sensitive to overnight rates where the Fed operates, and the unexpectedly strong job report suggests a more aggressive Fed moving forward.