Ten-Yield Slides To Lowest Closing Level In Over A Month

(RTTNews) - Treasuries moved higher over the course of the trading day on Friday, extending the advance seen during Wednesday's session.

After an early advance, bond prices remained firmly positive throughout the trading day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 6.4 basis points to 4.178 percent.

The ten-year yield closed lower for the fourth time in the past five sessions, slumping to its lowest closing level in over a month.

Treasuries continued to benefit from optimism about the outlook for interest rates following Wednesday's closely watched consumer price inflation data, which came in line with economist estimates.

While the data showed an acceleration in the annual rate of consumer price growth, the Federal Reserve is still expected to lower rates by another quarter point next month.

CME Group's FedWatch Tool is currently indicating a 66.0 percent chance of a 25 basis point rate cut when the Fed meets in mid-December.

"The momentum in inflation toward the Fed's 2% target has sputtered recently but not enough, in our view, to prevent the Fed from cutting interest rates in December," said Ryan Sweet, Chief U.S. Economist at Oxford Economics.

Looking ahead, the Labor Department's monthly jobs report is likely to be in the spotlight next week, while reports on manufacturing and service sector activity may also attract attention.