Market participants are holding their breath in anticipation of the upcoming economic data release, which includes figures on inflation, employment, and consumer spending. These data points are critical for assessing the current health of the economy and predicting future trends.

Analysts believe that stronger-than-expected data could lead to increased expectations of interest rate hikes by the Federal Reserve, potentially putting downward pressure on bond prices. Conversely, weaker data could signal a slowing economy and prompt a rally in the bond market.

Trading activity is expected to remain subdued until the data is released, as investors await clarity on the economic outlook. The bond market’s reaction to the data will likely set the tone for trading in the coming days.