The global market consensus expressed this week by stock, bond and commodity prices is that economic growth is threatened by high gas prices and by the Fedâs reaction to inflation. Oil prices have been going down steadily lately but the main concern is about the Fedâs reaction, a typical thing in the days preceding the release of employment data or FOMC meetings. Employment data will be released tomorrow and the bond market has been getting ready for this by integrating fears of higher interest rates over a period of several weeks. The stock market is now showing signs of weakness; oil has been going down from $70 to $60; and the bond market has been going down steadily for 4 weeks. In that context, the Fed has less pressure but also less room to increase interest rates so my bet is that even if the employment numbers are high, the bond market will find itself already saturated with pessimistic information. If employment is particularly high, bonds are likely to dip and come back at the end of the day or Monday.