(Bloomberg) — A selloff in US Treasuries paused on Friday, bringing yields down from their highest levels of the year, after a report on inflation allayed concern about a spate of hotter-than-expected price data.
Most Read from Bloomberg
US yields declined as investors interpreted the latest reading of the Federal Reserve’s preferred gauge of inflation to support at least one interest-rate cut by the end of the year. The two-year rate, more sensitive than longer-maturity tenors to changes by the Fed, retreated back below 5%, while the 10-year yield fell as much as 7 basis points to 4.63%.
“It’s a little relief rally,” said Michael Contopoulos, head of fixed income at Richard Bernstein Advisors, noting the small scope of the move. “Investors need to wake up to the idea that inflation is sticky and the Fed won’t be cutting anytime soon,” he said. “In fact, the better question to ask: is it time to discuss a…
