Bond Rout Eases as Traders Find Relief in Key Inflation Readings
- US yields extend retreat from Thursday’s year-to-date highs
- Expectations for at least one Fed rate cut in 2024 stay intact
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A selloff in US Treasuries paused on Friday, bringing yields down from their highest levels of the year, after a report on inflation allayed concern about a spate of hotter-than-expected price data.
US yields declined as investors interpreted the latest reading of the Federal Reserve’s preferred gauge of inflation to support at least one interest-rate cut by the end of the year. The two-year rate, more sensitive than longer-maturity tenors to changes by the Fed, retreated back below 5%, while the 10-year yield fell as much as 7 basis points to 4.63%.