Stock Market Surges on Inflation Data, Nasdaq Leads Decades-Long Bull Charge

Bond traders are preparing for a volatile week as key employment data could push yields on 10-year Treasuries towards 4%, a level that may attract investors to government debt. The benchmark US rate rose to 3.89% last week, approaching the highest levels seen this year. A series of upcoming events, including economic reports and minutes from the Federal Reserve's latest meeting, could lead to further selling and potentially lift yields to 4%. The question for bond investors is whether yields in the 4% range are attractive and offer sufficient compensation for the risk of the central bank failing to control inflation.