Treasuries Rally as Data Backs the Case for a September Rate Cut

  • Fed’s favored inflation gauge came in-line with expectations
  • Traders look ahead to Fed decision, jobs report next week
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Treasuries rose at the end of a volatile week as the Federal Reserve’s favorite inflation gauge cemented traders’ expectations for an interest-rate cut in September.

The advance pushed yields lower across the curve on Friday, with two- and 10-year yields down by about five basis points to 4.39% and 4.2%, respectively. US government debt is on pace for a third-straight month of gains, according to data compiled by Bloomberg, the best streak since mid-2021.