Bond traders are bracing for a week filled with potentially market-moving economic data releases. The upcoming reports are expected to shed light on the current state of the economy, particularly regarding inflation and growth.

Of particular interest is the upcoming inflation data, which will be closely scrutinized for any signs of accelerating price pressures. A higher-than-expected inflation reading could prompt the Federal Reserve to adopt a more hawkish stance on interest rates, potentially leading to a sell-off in the bond market. Conversely, a weaker-than-expected reading could signal a slowdown in the economy and ease concerns about inflation, potentially supporting bond prices.

Traders will also be paying close attention to the latest figures on economic growth. Stronger-than-expected growth could also fuel inflation concerns, while weaker growth could raise concerns about a recession. These figures will provide vital clues to the Federal Reserve as it weighs its next policy move.