Treasuries Fall, Erasing Thursday's Rebound Ahead of Key Inflation Data

Macro
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Summary · why it matters

Treasuries declined on Friday, reversing the prior session's gains. The benchmark ten-year yield rose 3.0 basis points to 4.569 percent, matching the more than one-month closing high set on Wednesday. The move came as traders monitored Middle East developments, with President Trump stating Iran has asked to continue talks and the U.S. has agreed, while reiterating that the ceasefire is over. Attention also turned to next week's consumer and producer price inflation reports, which could influence the interest-rate outlook before the Federal Reserve's upcoming policy meeting. CME Group's FedWatch Tool shows a 68.5 percent probability the Fed will hold rates steady and a 31.5 percent chance of a quarter-point hike.

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