The yield on the 10-year US Treasury note hovered near 4.11% on Friday, stabilizing after a sharp drop in the previous session and remaining close to its lowest level in two months. A broad-based selloff across global financial markets has driven safe-haven inflows into Treasuries, supporting prices and weighing on yields.
Investor attention is now centered on the January consumer price index release, which is expected to show headline inflation easing to 2.5% from 2.7%, and core inflation slowing to 2.5% from 2.6%.
Earlier in the week, strong nonfarm payrolls data underscored the resilience of the labor market, though the latest weekly jobless claims came in above expectations. Futures markets currently imply that the Federal Reserve is likely to leave interest rates unchanged in March, while pricing in two 25-basis-point cuts later this year, one in June and another in September.
