Standard Chartered: Fed likely to hike 25bps next week on strong US jobs, inflation data

Standard Chartered expects the US Federal Reserve to raise interest rates by 25 basis points next week after August employment and producer inflation data came in stronger than expected. The bank's economist Rajat Bhattacharya calls it a possible credibility hike, though he does not see it as the start of a fresh tightening cycle. The 10-year Treasury yield has climbed to 4.97%, its highest in three years, and Standard Chartered sees limited room for further sustained increases.