A strong employment report is enough to push the market to increase bets on the Fed's interest rate hike, and trigger a significant bearish flattening of the US Treasury yield curve. Against the backdrop of new Federal Reserve Chairman Kevin Walsh's reduction in forward-looking guidance, the importance of economic data has further increased. This also put pressure on Walsh to fulfill the hawkish signals released at the Jackson Hole meeting, because at a time when central banks around the world are tightening their policies, if the Federal Reserve remains on hold, it may cause the US Treasury yield curve to steeper. A large number of workers lost their temporary protection status, which at one point became an uncertain factor. Theoretically, it was possible for non-farm payrolls to decline for the second month in a row. However, not only was the non-agricultural sector better than expected in August, the previous data was revised up. Coupled with rising labor participation rates and strong wage growth, this employment report can be said to have a strong overall performance. That makes next week's CPI report even more critical. This will be the last important economic data before the FOMC meeting in September. Current market pricing shows that the probability that the Federal Reserve will raise interest rates at that time is about 60%.

A strong employment report is enough to push the market to increase bets on the Fed's interest rate hike, and trigger a significant bearish flattening of the US Treasury yield curve. Against the backdrop of new Federal Reserve Chairman Kevin Walsh's reduction in forward-looking guidance, the importance of economic data has further increased. This also put pressure on Walsh to fulfill the hawkish signals released at the Jackson Hole meeting, because at a time when central banks around the world are tightening their policies, if the Federal Reserve remains on hold, it may cause the US Treasury yield curve to steeper. A large number of workers lost their temporary protection status, which at one point became an uncertain factor. Theoretically, it was possible for non-farm payrolls to decline for the second month in a row. However, not only was the non-agricultural sector better than expected in August, the previous data was revised up. Coupled with rising labor participation rates and strong wage growth, this employment report can be said to have a strong overall performance. That makes next week's CPI report even more critical. This will be the last important economic data before the FOMC meeting in September. Current market pricing shows that the probability that the Federal Reserve will raise interest rates at that time is about 60%.