Financial Focus
September 28, 2026 

     GOOD MORNING!     A global bond selloff last week included the US Treasury market.  Factors contributing to the US Treasury yield curve rising and taking on a steeper profile were better-than-expected economic data, inflation angst, fiscal concerns, geo-political uncertainties, competition from AI-related debt offerings, poor demand for new issued couponed Treasury supply and Fed hawks circling over the market.  Yield on longer duration bonds rose disproportionately more than yields on shorter maturities, thus steepening the curve.  The stock market also had a volatile week but the benchmark equity indices managed to end with modest to moderate gains.     

     Middle East tensions and dimmed hopes for a truce has pushed oil higher and triggered another selloff in global bonds.  In turn, stock index futures are modestly negative and indicating a negative opening.  The week ahead, with a lot of economic data and Fed speakers, could keep the markets churning.  The data will touch on both sides of the Fed’s dual mandates, full employment and stable prices.  The labor market data starts tomorrow with JOLTS, continues Wednesday with the September ADP Private Employment Change, jobless claims on Thursday and the September employment report on Friday.  Wednesday will also see reportedly Fed’s favorite inflation gauge, the headline and core PCE Deflator.  Additionally, there will be Treasury Bill auctions every day except Friday along with month-end, quarter-end.  Stay buckled up.