analysis

Some investors say the bond market is underpricing long-term fiscal risks and danger posed by pressure from the White House on the Federal Reserve to cut interest rates.

Some investors see potential cracks in the U.S. bond market and red flags from recent whipsawing moves, saying the market is underpricing long-term fiscal risks and the danger posed by White House pressure on the central bank to cut interest rates.

U.S. bond markets sold off earlier this week as concerns about global fiscal health escalated, although the pain was quickly reversed and bonds rallied on weak economic data. The rebound continued on Friday, as a sharp slowdown in U.S. job growth raised the prospect that the Federal Reserve would embrace a faster pace of monetary easing than anticipated.

Investors,

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