Treasury Market Rally Stalls on Final Day of Winning Quarter

  • Yields rose from session lows in choppy trading on Friday
  • Fed’s preferred gauge of US inflation decelerated in May
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A rally in US Treasuries lost momentum on the final trading day of June, with yields extending their climb in the last hour of trading when bond indexes rebalanced.

Longer-maturity yields rose at least 10 basis points on the day, capping a week that was marked by accelerating inflation overseas and currency-market fireworks. The calendar-driven spike extended a rebound from the session lows seen after an ebb in the Federal Reserve’s favored inflation gauge.