US 10-Year Yield Holds Decline
The yield on the 10-year US Treasury note remained around 4.37% on Friday, hovering near seven-week lows as a benign inflation report reduced expectations for multiple Federal Reserve rate hikes this year. The latest US PCE inflation data came in broadly in line with forecasts, and although inflation remains well above the Fed’s 2% target, the report eased concerns about a sharper-than-expected acceleration in price pressures. Even so, markets are pricing in an 80% chance of a Fed rate hike in December following last week’s hawkish pause, while the probability of a September increase stands at around 63%. New York Fed President John Williams also said on Thursday that inflationary pressures are expected to moderate this year but remain too high.

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