US It seems Wall Street is much more confident about the economic recovery than the Fed and if we see a better-than-expected employment report that could deepen the bond market selloff. The US nonfarm payroll report for February is expected to show a 133,000 gain in jobs, which would be an improvement over the 49,000 increase in January. Risk appetite will continue to react closely to what happens in the bond market and more importantly with Fed speak. The surge in Treasury yields has yet to become a significant risk for the Fed, but that won’t be the case if the current trajectory in yields continue. The Fed will jawbone or possibly deliver some action soon since real yields are probably much higher at this point in the cycle than what they would be comfortable with.