Insight
Corporate Bond Market Insight - How Corporate Bonds Reacted to a Stressed September Labor Market
October 9, 2025
What were the key takeaways from last month’s numbers? Our corporate bond specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for fixed income investors.
Key takeaways from the latest edition:
The Federal Reserve (Fed) reduced the federal funds rate for the first time since December 2024 at its September meeting, moving the target range to 4.00% to 4.25%. September’s Fed meeting marked a shift in emphasis away from inflation and toward employment.
The Bureau of Labor Statistics had the largest preliminary annual revision ever, removing 911,000 previously reported jobs from the total.
The Job Openings and Labor Turnover Survey showed a reduction in job openings, but no evidence of extensive layoffs, and the average hourly work week remains stable.
The economy continues to generate reasonable growth, with the final estimate of Q2 GDP revising sharply higher from 3.3% to 3.8%.
