Treasuries rallied sharply after data showing a contraction in US business activity for the first time since 2020 heightened fears the economy will plunge into a recession.
The slide in bond yields gathered pace on Friday, with the weak economic reading spurring bets the Federal Reserve will reduce the size of rate hikes to half a point in September after an all-but-certain 75-basis-point increase in July. The 10-year yield sank below 2.8%.
