Bond Traders Enter Fed Blackout Betting a Hike Won't Quash Rally
- U.S. 10-year yield is at lowest level of 2017 after jobs data
- Market pricing still indicates Fed hike seen this month
Treasury Yields Plunged to a New 2017 Low
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Before heading into the darkness of the Federal Reserve’s blackout period, bond traders loaded up on Treasuries.
U.S. government debt rallied Friday, driving longer-term yields to the lowest this year, after Labor Department figures showed payrolls and average hourly earnings rose in May by less than estimated. The report came on the heels of data earlier in the week showing the Fed’s preferred inflation gauge slipped further below its 2 percent target.