(Bloomberg) — Yields on long-dated Treasuries fell to their lowest levels in more than a week Friday, adding to bond-market gains driven by expectations that slowing inflation will allow the Federal Reserve and other central banks to cut interest rates this year.
Shorter-maturity yields declined slightly less on the day as investors looked ahead to auctions of two-, five- and seven-year notes beginning Monday, earlier than usual because of the holiday-shortened week. US bonds drew support from UK and euro-zone government debt, which rallied based on rate-cut bets, and amid weakness in the onshore yuan.
The benchmark 10-year note’s yield declined as much as 7 basis points to 4.20%, the lowest level since March 14. Two-year yields fell as much as 5 basis points to 4.59% ahead of Monday’s $66 billion auction, a record sum for the tenor. UK and German yields slumped as traders added to wagers on rate cuts following comments by Bank…
