Treasury Yields Extend Drop as Traders Bet on Fed Pause
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Yields on 10-year Treasuries dropped 13 basis points to 4.5% on Friday, extending their decline since Tuesday to about 40 basis points.
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Interest rate derivatives show traders see only a 20% chance of another Fed rate hike by January.
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The unemployment rate rose to 3.9% in November, the highest since early 2022.
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Monthly wage growth slowed in the latest jobs report, fueling speculation the Fed is nearing the end of its tightening cycle.
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The benchmark S&P 500 index is poised for its best week this year following the bond rally.