Bond Investors Catch Up With Fed’s Plans

Strong economic data erase doubts about Fed’s tightening timetable

The bond market is starting to believe the Federal Reserve.

Investors sold off U.S. government bonds Friday after fresh data showed the labor market continued to tighten in September, more reason for the Fed stick to its plans to keep gradually raising interest rates.

The U.S. unemployment rate fell to 3.7%, its lowest level since 1969, the...