Treasuries Set to End Volatile Week Higher as Rate-Cut Bets Ease

  • Ten-year yield is down for week by 4 basis points to 3.89%
  • Traders coalesce around quarter-point rate cut in September
Pricing of Fed Cuts 'Too Aggressive': PGIM's Tipp
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Treasuries were set to end the week on a strong note after being whipsawed by economic data, with traders coalescing around bets the Federal Reserve will cut interest rates by a quarter-point next month.

US government bonds advanced on Friday after a University of Michigan survey showed improving consumer sentiment and steady expectations for inflation. That pushed longer-dated yields even lower, with the 10-year’s down on the week by about five basis points to 3.89%, after 3 p.m. in New York. The policy-sensitive two-year yield, meantime, was higher on the week by about one basis point.