U.S. Yields Set for Biggest Weekly Drop in Year as Shorts Exit
- Downward trajectory in yields looks like shift in positioning
- Latest pickup in inflation likely transitory: NatWest Markets
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Treasury 10-year yields headed for their biggest weekly decline in a year amid signs traders are further unwinding short positions in U.S. government debt despite a jump in consumer prices.
Benchmark yields have tumbled 11 basis points this week, putting them on track for their biggest drop since June 2020, and touched a three-month low of around 1.43% on Friday. They had briefly ticked up following the faster-than-expected inflation data on Thursday before swiftly heading back lower again.