A $2 Trillion Market Faces ‘Enormous Risk’ From US Data Distrust

The $2 trillion market for securities linked to US inflation data could be the first area of Treasuries to crack if the Bureau of Labor Statistics is politicized, according to bond investors.

After President Donald Trump fired BLS chief Erika McEntarfer on Friday following a weak jobs report and said the figures were “rigged,” investors have fretted that the move could erode trust in government data, which has a major effect on asset prices.

That link is perhaps most acute in Treasury inflation-protected securities, where the face value of a bond is adjusted based on the consumer price index, which ...