BY: MATTHEW GRAHAM
Last week’s key events were the Fed announcement on Wednesday and the jobs report on Friday (with other econ data playing a strong supporting role). The Fed helped bonds. They were much friendlier than expected, but critically, they justified that friendliness with concerns over economic growth. In short, they are watching economic data like hawks (or doves?) for any sign of weakness. Such weakness would justify an indefinite pause in the rate hike cycle.