FX.co ★ Ten-Yield Slides To Lowest Closing Level In Over A Month

On Friday, Treasury securities experienced gains, building upon the upward trend that began during Wednesday's trading session. Bond prices experienced an early increase and remained firmly positive throughout the day. Consequently, the yield on the benchmark ten-year note— which inversely relates to its price—declined by 6.4 basis points to 4.178 percent.

This marks the ten-year yield's fourth drop in the past five sessions, reaching its lowest closing level in over a month. The continued bullish performance in Treasuries is attributed to positive sentiment surrounding future interest rates after Wednesday’s consumer price inflation data met economist expectations.

Despite the data indicating a rise in the annual rate of consumer price growth, it is still anticipated that the Federal Reserve will decrease rates by another quarter percentage point next month. According to the CME Group's FedWatch Tool, there is currently a 66.0 percent probability of a 25 basis point rate cut during the Federal Reserve meeting scheduled for mid-December.

"The recent inflation momentum toward the Fed's 2% target has faltered, yet we don't believe it's significant enough to deter the Fed from reducing interest rates in December," stated Ryan Sweet, Chief U.S. Economist at Oxford Economics.

As we look to the future, the Labor Department's upcoming monthly jobs report will likely command attention next week, alongside reports on manufacturing and service sector activities that may also draw interest.