- Treasury yields fell 3 to 5 basis points, with the two-year yield leading the rally because it is most sensitive to Fed policy.
- The two-year yield had climbed above 4.40% earlier in the week, its highest level since January 2025, on expectations of a Fed rate increase this month.
- Waller’s comments tied the policy outlook to continued disinflation, supporting front-end Treasuries.
Quotes
“he’d be inclined to leave interest rates unchanged as long as inflation continues to slow.”