A rally in the Treasury market accelerated on Friday as softening US employment data fueled speculation the Federal Reserve will start aggressively cutting interest rates to keep the economy from stalling.
The policy-sensitive two-year Treasury yield tumbled as much as 31 basis points to 3.84%, the lowest since May 2023, before paring the drop. Rates on Treasuries of all maturities declined after data showed job growth slowed last month, kindling concern the US economy is at risk of decelerating into recession.
