12.09.202513:14:39UTC+00Treasury Yields Edge Higher from Recent Lows

The yield on the US 10-year Treasury increased by nearly 3 basis points to 4.06% on Friday, maintaining its position just above the five-month lows reached in the previous session. This occurred as market confidence grew regarding the Federal Reserve's anticipated resumption of rate cuts next week. Contributing to this sentiment was a Consumer Price Index report aligning closely with projections, alongside higher-than-expected jobless claims, which strengthened the expectation of a more accommodating monetary policy. Traders are currently predicting a 25-basis-point reduction in the federal funds rate at the upcoming September meeting. By the end of the year, market forecasts suggest the equivalent of two to three quarter-point cuts, with some participants even speculating on a more significant half-point reduction in the near-term. On Friday, yields rose across the board, particularly for the 20- and 30-year maturities.