13.03.202612:56:22UTC+00Treasury Yields Fall on Friday

The yield on the US 10-year Treasury note slipped about 2 bps to 4.25% on Friday, its first decline in four sessions, as investors took some comfort from a modest pullback in oil prices after this week’s rally. At the same time, traders digested a new round of key economic data, including the PCE report, which showed annual PCE inflation slowing to 2.8%. GDP growth was also revised sharply lower, to 0.7% in Q4—half the initial 1.4% estimate. These developments strengthened expectations for a single Federal Reserve rate cut this year, likely in September. The Fed meets this week, and while no change to the federal funds rate is anticipated, markets will scrutinize the decision and communication for guidance on the policy path for the rest of the year. Despite Friday’s drop, the benchmark 10-year yield remains up nearly 13 bps for the week, reflecting persistent concerns about an energy-driven inflation spiral and growing worries over fiscal imbalances tied to war-related spending.