Treasuries End August Sliding as Traders See Gradual Fed Cuts
- Five- to 30-year reach weekly highs, steepening yield curve
- Long-term yields reached day’s highs in month-end trading
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Treasury yields rose Friday as inflation data reinforced the outlook for a less-aggressive pace of Federal Reserve interest-rate cuts starting next month and investors anticipated an increase in global bond supply.
Most yields reached their highest levels in more than a week in US late-afternoon trading as focus increasingly shifted from the day’s economic data to the outlook for heavy supply of new corporate and European government debt. Long-maturity yields rose the most, with the 30-year climbing as much as 8 basis points to 4.23% and approaching its highest level relative to the five-year since 2022. The 10-year yield nearly exceeded the two-year for only the second time in the past two years.